Quick Tax Returns Budgets 1

Multiple Choice

Quick Tax Returns budgets 1.5 direct labor hours for every tax return that it prepares, at a standard cost of $20 an hour. During the most recent year, 500 returns were completed with the labor cost totaling $17,600. The actual labor cost was $22 per hour during that period. What was the direct labor price variance?

A) $1,500 unfavorable
B) $1,500 favorable
C) $1,600 favorable
D) $1,600 unfavorable