Bartels Corp

Multiple Choice

Bartels Corp. produces woodcarvings. It takes 2 hours of direct labor to produce a carving. Bartels' standard labor cost is $12 per hour. During August, Bartels produced 10,000 carvings and used 21,040 hours of direct labor at a total cost of $250,376. What is Bartels' labor rate variance for August?

A) $2,000 favorable.
B) $2,104 unfavorable.
C) $2,104 favorable.
D) $4,160 favorable.
E) $2,000 unfavorable.