What oriole direct labor rate variance is

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Problem 1: Assembly line workers at Oriole Manufacturing worked a total of 12500 direct labor hours to produce 36600 units. The standard for producing one unit is 15 minutes at a wage rate of $10.5. If the actual wage rate was $11.0 per direct labor hour, Oriole's direct labor rate variance is

Option 1: $4575 favorable.
Option 2: $6250 favorable.
Option 3: $4575 unfavorable.
Option 4: $6250 unfavorable.

Reference no: EM132983057

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