Machine Builders Inc

Multiple Choice

Machine Builders Inc. adopted a standard cost system several years ago that it uses in conjunction with its process cost system. The per-unit standard costs for direct materials and direct labor for its single product are as follows:The direct labor rate variance for July (to nearest dollar) is:

A) $6,600 favorable.
B) $16,600 favorable.
C) $21,000 unfavorable.
D) $57,600 unfavorable.
E) $58,200 unfavorable.