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What is the direct labor efficiency variance

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Question - The following information is presented for the Maybeel Manufacturing Company.

Direct labor rate standard is $11.55.

Direct labor efficiency standard is 2.5 hours per unit.

Budgeted production is 1,200 units.

Production required 2,910 direct labor hours at a cost of $33,174.

Actual production is 1,150 units.

What is the direct labor efficiency variance?

A. $1,039.50 Favorable

B. $404.25 Unfavorable

C. $404.25 Favorable

D. $1,039.50 Unfavorable

Reference no: EM131598970

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