A job was budgeted to require 3 hours of labor per unit at $11.00 per hour. The job consisted of 8,000 units and was completed in 22,000 hours at a total labor cost of $269,500. What is the direct labor efficiency variance?

Multiple Choice

$27,500 unfavorable.

$22,000 unfavorable.

$16,000 unfavorable.

$22,000 favorable.

$6,000 unfavorable.

I get confused when the questions ask for the direct labor rate variance or the direct labor efficiency variance. Is it the same thing? Please explain. Thank you!!