Lopata Manufacturing Uses a Standard Cost System for Its Guitar

Multiple Choice

Lopata Manufacturing uses a standard cost system for its guitar boxes. The standard labor rate per box is $1 per box. This standard was established on the basis of producing 8 boxes per hour. This month, Lopata produced 1,500 boxes using 580 direct labor hours at an actual direct labor cost of $5,800. The direct labor rate variance was

A) $ 1,600 favorable
B) $ 1,160 favorable
C) $ 1,600 unfavorable
D) $ 1,160 unfavorable