The Ticktock Corporation Produces Clocks

Multiple Choice

The Ticktock Corporation produces clocks. According to company standards, it should take 2 hours of direct labor to produce a clock. Ticktock's standard labor cost is $10 per hour. During June, Ticktock produced 5600 stopwatches and used 14,000 hours of direct labor at a total cost of $266,000. What is Ticktock's direct labor rate variance for June?

A) $2800 favorable
B) $2800 unfavorable
C) $126,000 favorable
D) $126,000 unfavorable