The following data is given for the Harry Company:
Budgeted production 26,000 units
Actual production 27,500 units
Materials:
Standard price/ounce $6.50
Standard ouncese per completed unit 8
Actual ounces purchased and used in production 228,000
Actual price paid for materials $1,504,800
Labor:
Standard hourly rate $22 per hour
Standard hours allowed per completed unit 6.6
Actual labor hours worked 183,000
Actual total labor costs $4,020,000
Overhead:
Actual and budgeted fixed overhead $1,029,600
Standard variable overhead rate $24.50 per standard labor hour
Actual variable overhead costs $4,520,000
Overhead is applied on standard labor hours.
The direct labor time variance is:
a) 6,000 favorable
b) 6,000 unfavorable
c) 33,000 unfavorable
d) 33,000 favorable