Hassock Corp

Multiple Choice

Hassock Corp. produces woven wall hangings. It takes 2 hours of direct labor to produce a single wall hanging. Hassock's standard labor cost is $12 per hour. During August, Hassock produced 10,000 units and used 21,040 hours of direct labor at a total cost of $250,376. What is Hassock's labor rate variance for August?

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