1. Question Content Area

   The following data is given for the Harry Company:

   Budgeted production	1,003 units
   Actual production	931 units
   Materials:
   Standard price per ounce	$1.947
   Standard ounces per completed unit	10
   Actual ounces purchased and used in production	9,589
   Actual price paid for materials	$19,657
   Labor:
   Standard hourly labor rate	$14.99 per hour
   Standard hours allowed per completed unit	4.2
   Actual labor hours worked	4,795
   Actual total labor costs	$77,919
   Overhead:
   Actual and budgeted fixed overhead	$1,171,000
   Standard variable overhead rate	$24.00 per standard labor hour
   Actual variable overhead costs	$134,260
   Overhead is applied on standard labor hours. (Round interim calculations to the nearest cent.)

   The direct labor rate variance is

   a.$19,305.10 favorable

   b.$19,305.10 unfavorable

   c.$6,041.70 favorable

   d.$6,041.70 unfavorable