Use the Following Data to Find the Direct Labor Rate $\text {Standard:}$

Multiple Choice

Use the following data to find the direct labor rate variance if the company produced 7,000 units of product during the period. $\text {Standard:}$
$\begin{array}{ll}\text { Direct labor ( } 3.2 \mathrm{hrs} . \text { per unit } @ \$ 7 \mathrm{hr} .) & \$ 22.40 \text { per unit } \\\text { Actual cost incurred: } & \\\text { Direct labor }(24,500 \mathrm{hrs} . @ \$ 7.50 / \mathrm{hr} \text {.) } & \$ 183,750\end{array}$

A) $14,700 unfavorable.
B) $14,700 favorable.
C) $26,950 favorable.
D) $12,250 unfavorable.
E) $12,250 favorable.