Use the following data to find the total direct labor cost variance if the company produced 3,500 units during the period.

Direct labor standard (4.00 hrs. @ $7.10/hr.) $ 28.40 per unit Actual hours worked 12,550 Actual rate per hour $ 7.60

Multiple Choice

• $7,000 favorable.
• $4,020 favorable.
• $7,000 unfavorable.
• $4,020 unfavorable.
• $12,550 favorable.