Harris Manufacturing Produces White Sauce How Much Is the Direct Labor Rate Variance for 2017

Multiple Choice

Harris Manufacturing produces white sauce.It uses units as the cost driver for overhead.The following information was provided concerning its standard cost system for 2017: $\begin{array}{|l|l||l|l|}\hline {\text { Budgeted and Standard Data }} & &\text { Actual Data } \\\hline \text { Material } & \begin{array}{l}1 / 4 \mathrm{lb} . @ \$ 14 \text { per } \\\text { pound }\end{array} & \text { Froduced } & 6,200 \text { units } \\\hline \text { Labor } & \begin{array}{l}1.4 \mathrm{hrs} \text { hour } @ \$ 16 \text { per } \\\text { hour }\end{array} & \begin{array}{l}\text { Materials } \\\text { purchased }\end{array} & \begin{array}{l}1,600 \mathrm{lbs} \text { for } \$ 13.70 / \\\text { pound }\end{array} \\\hline \text { Total fixed overhead } & \$ 84,000 & \text { Materials used } & 1,520 \mathrm{lbs} . \\\hline \text { Variable overhead } & \$ 6.50 \text { per unit } & \text { Labor worked } & 8,740 \mathrm{hrs} \text {. at } \$ 15.90 \text { /hour } \\\hline \text { Production } & 6,000 \text { units } & \text { Total overhead } & \$ 122,000 \\\hline\end{array}$ How much is the direct labor rate variance for 2017?

A) $874 favorable
B) $86 unfavorable
C) $960 unfavorable
D) $5,440 unfavorable