Use the Following Data to Find the Direct Labor Efficiency

question 69

Multiple Choice

Use the following data to find the direct labor efficiency variance if the company produced 3,500 units during the period. Direct labor standard (4 hrs. @ $7/hr.) $ 28 per unit Actual hours worked 12,250
Actual rate per hour $ 7.50

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

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