Use the following data to find the direct labor rate variance if the company produced 7,000 units of product during the period.

Standard: Direct labor (3.2 hrs. per unit @ $7/hr.) $ 22.40 per unit

Actual cost incurred: Direct labor (24,500 hrs. @ $7.50/hr.) $ 183,750

Multiple Choice

• $12,250 unfavorable.

• $14,700 unfavorable.

• $14,700 favorable.

• $12,250 favorable.

• $26,950 favorable.