The Ticktock Corporation produces clocks. According to company standards, it should take 2 hours of direct labor to produce a clock. Ticktock's standard labor cost is $10 per hour. During June, Ticktock produced 5600 stopwatches and used 14,000 hours of direct labor at a total cost of $266,000. What is Ticktock's direct labor rate variance for June?
A)$2800 favorable
B)$2800 unfavorable
C)$126,000 favorable
D)$126,000 unfavorable

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The Answer of The Ticktock Corporation produces clocks. According to company standards, it should take 2 hours of direct labor to produce a clock. Ticktock's standard labor cost is $10 per hour. During June, Ticktock produced 5600 stopwatches and used 14,000 hours of direct labor at a total cost of $266,000. What is Ticktock's direct labor rate variance for June?
A)$2800 favorable
B)$2800 unfavorable
C)$126,000 favorable
D)$126,000 unfavorable

The Ticktock Corporation Produces Clocks