Madrid CoHas a Direct Labor Standard of 4 Hours Per Unit

Multiple Choice

Madrid Co.has a direct labor standard of 4 hours per unit of output.Each employee has a standard wage rate of $11 per hour.During February,Madrid Co.paid $99,500 to employees for 9,150 hours worked.2,400 units were produced during February.What is the direct labor rate variance?

A) $1,150 favorable
B) $4,950 favorable
C) $6,100 favorable
D) $302 favorable