Question - Madden Corporation manufactures t-shirts, which is its only product. The standards for t-shirts are as follows:
Standard direct labor cost per hour: $17
Standard direct labor hours per t-shirt: .6
During the month of January, the company produced 1,250 t-shirts. Related production data for the month follows:
Actual direct labor hours: 770
Actual direct labor cost incurred: $13,000
What is the direct labor rate variance for the month?
A) $90 favorable
B) $90 unfavorable
C) $340 unfavorable
D) $340 favorable