The following data is given for the Harry Company:
Budgeted production 1,033 units
Actual production 929 units
Materials: Standard price per ounce $1.93
Standard ounces per completed unit 10
Actual ounces purchased and used in production 9,011
Actual cost of materials $18,473
Labor: Standard hourly labor rate $14.00 per hour
Standard hours allowed per completed unit 4.0
Actual labor hours worked 4,784.35
Actual total labor costs $72,961
Overhead: Actual and budgeted fixed overhead $1,173,122
Standard variable overhead rate $24.00 per standard labor hour
Actual variable overhead costs $133,962
Overhead is applied on standard labor hours.
Determine the direct labor rate variance.
Select the correct answer.
a.$5,980 F b.$20,937 F c.$20,937 U d.$5,980 U