The Standard Costs and Actual Costs for Direct Labor for the Manufacture

Multiple Choice

The standard costs and actual costs for direct labor for the manufacture of 2,500 actual units of product are as follows:Standard CostsDirect labor7,500 hours @ $11.80Actual CostsDirect labor7,400 hours @ $11.40The direct labor rate variance is

A) $2,960 unfavorable
B) $4,500 favorable
C) $2,960 favorable
D) $4,500 unfavorable