16.

Jackson Industries uses a standard cost system in which direct materials inventory is carried at standard cost. Jackson has established the following standards for one unit of product:

	Standard Quantity		Standard Price or Rate		Standard Cost
Direct materials	4	pounds	$3.00	per pound	$12.00
Direct labor	1.80	hours	$10.00	per hour	$18.00

During May, Jackson purchased 76,800 pounds of direct material at a total cost of $245,760. The total factory wages for May were $287,400, 90 percent of which were for direct labor. Jackson manufactured 15,000 units of product during May using 57,400 pounds of direct material and 27,500 direct labor-hours. The labor rate variance for May is:

$16,340 Favorable

$13,940 Favorable

$16,340 Unfavorable

$15,140 Unfavorable