Natural Remedy Company gathered the following actual results for the current month:
Actual amounts:
Units produced 5,600
Direct labor cost (13,000 hours) $58,500
Budgeted production and standard costs were:
Budgeted production 5:500
Direct labor 2 hrs./unit at $9.50/hr.
What is the direct labor rate variance?
a. $65.000 favorable
b. $56.000 favorable
c. $56.000 unfavorable
d. $65.000 unfavorable