1. Question Content Area

   The following data are given for Harry Company:

   Budgeted production	1,097 units
   Actual production	922 units
   Materials:
   Standard price per ounce	$1.887
   Standard ounces per completed unit	12
   Actual ounces purchased and used in production	11,396
   Actual price paid for materials	$23,362
   Labor:
   Standard hourly labor rate	$14.17 per hour
   Standard hours allowed per completed unit	4.9
   Actual labor hours worked	4,748
   Actual total labor costs	$77,155
   Overhead:
   Actual and budgeted fixed overhead	$1,178,000
   Standard variable overhead rate	$26.00 per standard labor hour
   Actual variable overhead costs	$132,944

   Overhead is applied on standard labor hours. (Do not round intermediate calculations and final answer to two decimal places.)

   The direct labor rate variance is

   a.$13,137.77 favorable

   b.$9,875.84 unfavorable

   c.$9,875.84 favorable

   d.$13,137.77 unfavorable