The Following Data Relate to Direct Labor Costs for March

Multiple Choice

The following data relate to direct labor costs for March:
Rate: standard, $12.00; actual, $12.25
Hours: standard, 18,500; actual, 17,955
Units of production: 9,450
Calculate the direct labor time variance.

A) $2,362.50 favorable
B) $2,362.50 unfavorable
C) $6,540.00 favorable
D) $6,540.00 unfavorable