The Davidson Corporation Produces Clocks

Multiple Choice

The Davidson Corporation produces clocks.According to company standards,it should take 2 hours of direct labor to produce a clock.Davidson's standard labor cost is $19 per hour.During June,Thomas produced 6,200 stopwatches and used 13,500 hours of direct labor at a total cost of $260,000.What is Thomas' direct labor rate variance for June?

A) $1,607 favorable
B) $1,607 unfavorable
C) $3,500 favorable
D) $3,500 unfavorable