Use the Following Data to Find the Direct Labor Efficiency

question 174

Multiple Choice

Use the following data to find the direct labor efficiency variance. $\begin{array}{llcc} \text { Direct labor standard (4 hrs. @\$7/hr.) } & \text {\$ 28 per unit } \\ \text { Actual hours worked per unit } & \text { 3.5 hours } \\ \text { Actual units produced } & \text { 3,500 units } \\ \text { Actual rate per hour } & \text { \$ 7.50 } \\\end{array}$

• A)$6,125 unfavorable
• B)$7,000 unfavorable
• C)$7,000 favorable
• D)$12,250 favorable
• E)$6,125 favorable

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