Use the Following Data to Find the Direct Labor Cost

Multiple Choice

Use the following data to find the direct labor cost variance. $$\begin{array} { l l } \text { Direct labor standard (4 hrs. @ \$7hr) } & \$ 28 \text { per urit } \\\text { Actual hours worked per urit } & 3.5 \text { hours } \\\text { Actual urits produced } & 3,500 \text { urits } \\\text { Actual rate per hour } & \$ 7.50\end{array}$$

A) $ 6,125 unfavorable.
B) $ 7,000 unfavorable.
C) $ 7,000 favorable.
D) $12,250 favorable.
E) $ 6,125 favorable.