The Rafferty Company developed standards for the manufacture…
The Rafferty Company developed standards for the manufacture of its product such that each unit should have 2 pounds of direct materials purchased at $4.60 per pound and should be produced in 1½ hours at a direct labor cost of $18 per hour. Actual production was 4,000 units using 8,200 pounds of direct materials at a total actual cost of $36,200 and required 5,800 direct labor hours at a total actual cost of $106,000. What is the direct labor price variance for the company? Use a positive number to indicate a favorable variance or a negative number to indicate an unfavorable variance.