Reference no: EM131792986

Question - The Whitfield Co. uses a standard costing system and has established the following standards:

Direct materials: 4 pounds at $8.00 per pound

Direct labor: 1 hour at $16.00 per hour

During July, Whitfield produced 6,000 units of its product and incurred the following actual costs:

Direct materials: 25,200 pounds purchased and used at $8.20 per pound

Direct labor: 5,600 hours worked at $15.30 per hour

What was the labor rate variance for July?

$3,920 unfavorable

$1,120 unfavorable

$1,120 favorable

$3,920 favorable