Wholesome Burger, Inc. budgeted 25,000 direct labor hours for producing 100,000 units. The standard direct labor rate is $6 per hour. During March, the company used 30,000 hours for producing 80,000 units and paid $6.25 per hour. Calculate the direct labor rate variance.

$7,500 unfavorable

$7,500 favorable

$10,000 unfavorable

$10,000 favorable

Wholesome Burger, Inc. budgeted 25,000 direct labor hours for producing 100,000 units. The standard direct labor rate is $6 per hour. During March, the company used 30,000 hours for producing 80,000 units and paid $6.25 per hour. Calculate the direct labor efficiency variance.

$60,000 favorable

$10,000 favorable

$60,000 unfavorable

$10,000 unfavorable

In its latest production, Vero Corp. calculated a favorable direct labor rate variance of $4,500 and an unfavorable direct labor efficiency variance of $3,750. What is the direct labor spending variance?

$750 unfavorable

$8,250 unfavorable

$8,250 favorable

$750 favorable