Elegant Designs manufactures decorative chains for all types of clothing and household needs. The company uses standard

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Elegant Designs manufactures decorative chains for all types of
clothing and household needs. The company uses standard costs to
prepare its flexible budget. For the second quarter of 20x8, direct
material and direct labor standards for the company’s most popular
product were as follows:

Direct material: 3 pounds per unit; $4 per pound
Direct labor: 4 hours per unit; $20 per hour

During the quarter, Elegant Designs produced 5,000 units. At the
end of the quarter, direct labor costs recorded were $375,000 for
25,000 direct labor hours used.
Based on these data, what is the direct labor cost variance?
$300,000 F.
$300,000 U.
$125,000 U.
None of the answers is correct.
$125,000 F.