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A company reported the following information: budgeted actual production in units 12000 10000 hourly wages ($) 15 14 quantity of direct labor to produce one

A company reported the following information: budgeted actual

production in units 12000 10000

hourly wages ($) 15 14

quantity of direct labor to produce one unit of finished product 2.5 3.0

The total direct labor efficiency variance is, in dollars: A. 75000 unfavorable B. 75000 favorable C. 70000 unfavorable D. 70000 favorable E. 84000 unfavorable

Please give a rationale to the answer.

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