The following data are given for Harry Company:
Budgeted production 1,094 units
Actual production 975 units
Materials:
Standard price per ounce $1.777
Standard ounces per completed unit 12
Actual ounces purchased and used in
production 12,051
Actual price paid for materials $24,705
Labor:
Standard hourly labor rate $14.71 per hour
Standard hours allowed per completed
unit 4.7
Actual labor hours worked 5,021
Actual total labor costs $81,591
Overhead:
Actual and budgeted fixed overhead $1,141,000
Standard variable overhead rate $26.00 per standard labor hour
Actual variable overhead costs $140,588
Overhead is applied on standard labor hours.
Determine the direct labor rate variance.
a. $5,980 F
b. $20,937 F
c. $20,937 U
d. $5,980 U