Holiday Chemical Corporation Uses a Standard Cost System to Collect

Multiple Choice

Holiday Chemical Corporation uses a standard cost system to collect costs related to the production of its "bowling ball" fruitcakes. The direct labor standard for each fruitcake is 1.25 hours at a standard cost of $11.00 per hour. During the month of November, Holiday's fruitcake production used 9,820 direct labor-hours at a total direct labor cost of $106,547. This resulted in production of 8,500 fruitcakes for November. What is Holiday's labor rate variance for November?

A) $8,855 Favorable
B) $1,473 Favorable
C) $13,047 Unfavorable
D) $14,520 Unfavorable