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StuckinMyHouse book company is a boutique shop that produces a small selection of adult coloring books....

StuckinMyHouse book company is a boutique shop that produces a small selection of adult coloring books.

The first quarter 2020 Master Budget was based on selling 1,200 units, with a direct labor cost of $3,600.  The company experienced an unexpected surge in purchases, actually selling 2,300 coloring books.  It spent $6,640 on direct labor.

The one employee earned $10 per hour, as expected.

How much is the rate variance (aka efficiency variance) for direct labor?

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