Hobart Company Manufactures Patio Umbrellas

question 45

Multiple Choice

Hobart Company manufactures patio umbrellas.The direct labor standard for each umbrella is 1.25 direct labor hours at a standard rate of $12.00 per hour.During June, Hobart used 36,000 direct labor hours to produce 30,000 umbrellas.Hobart's direct labor payroll totaled $428,400.What is Hobart's direct labor rate variance for November?

• A)$3,600 unfavorable
• B)$3,600 favorable
• C)$18,000 favorable
• D)$18,000 unfavorable

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