Choice "A" is correct. The direct labor price variance is $2,375 favorable and is computed using the tabular approach as follows:

¹ The actual hours worked is computed from the actual direct labor costs and actual per hour direct labor cost given in the fact pattern as follows: $111,625 ÷ $23.50.The actual rate of pay for direct labor is less than the standard rate of pay. Because the labor rate is less than standard, the variance is favorable. The difference in rates is applied to the actual hours to arrive at the labor price variance. [4,750 hours × ($24.00 − $23.50)]Mechanically, using the tabular format, if a figure on the left ($111,625) is larger than the figure on the right ($114,000), then the variance is unfavorable, but if the figure on the left is smaller (as is the case in this instance), the variance is favorable. However, it is recommended that you determine the "sign" of the variance by looking at the difference between the standard and actual rates, as explained above.Choice "b" is incorrect. Although the amount of the price variance is properly computed, the variance is improperly classified as unfavorable. Because the actual rate is less than the standard rate, this variance is favorable.Choice "d" is incorrect. The amount of the variance and its characterization as unfavorable are both incorrect. The amount is incorrectly computed based upon standard (5,000) rather than actual (4,750) hours.Choice "c" is incorrect. The amount of the variance is incorrect. The amount is incorrectly computed on the basis of (5,000) rather than actual (4,750) hours.