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Question - Hassock Corp. produces woven wall hangings. It takes 4 hours of direct labor to produce a single wall hanging. Hassock's standard labor cost is $16 per hour. During August, Hassock produced 15,000 units and used 60,170 hours of direct labor at a total cost of $960,720. What is Hassock's labor rate variance for August?
a. $1,994 favorable.
b. $2,000 unfavorable.
c. $2,000 favorable.
d. $3,994 favorable.
e. $1,994 unfavorable.
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