Answer Corporation Uses Standard Cost System Variable Cost @ $2 Per Hour
Total Variable Cost, $18,000

Answer Corporation uses standard cost system. The standard costs and actual costs for direct materials, direct labor, and factory overhead for the manufacture of 2,500 units of product are as follows: $\begin{array}{ll}\text { StandardCosts } \\ 2,500 \text { kilograms@\$8 }& \text { Direct labor } \\7,500 \text { hours @ } \$ 12 & \text { Direct material } \\\\\text { Actual Costs } & \\2,600 \text { kilograms } @ \$ 8.75 & \text { Direct material } \\7,400 \text { hours } \$ 11.40 & \text { Direct labor } \\\text { Factory overhead(100\% capacity- } 10,000 \text { hrs.) : } &\end{array}$

Variable cost @ $2 per hour
Total variable cost, $18,000
Fixed cost @ $0.80 per hour
Total fixed cost, $8,000
Refer to the information provided for Answer Corporation. The amount of the direct labor rate variance is:

A) $4,440 unfavorable.
B) $4,500 favorable.
C) $4,440 favorable.
D) $4,500 unfavorable.