Sanchez Company's output for the current period was assigned a $400,000 standard direct labor cost. The direct labor variances included a $10,000 unfavorable direct labor rate variance and a $4,000 favorable direct labor efficiency variance. What is the actual total direct labor cost for the current period?
A. $414,000.
B. $394,000.
C. $386,000.
D. $406,000.
E. $410,000.
Answer: D
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