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A job was budgeted to require 4 hours of labor per unit at $12.00 per hour. The job consisted of 6,400 units and was completed

A job was budgeted to require 4 hours of labor per unit at $12.00 per hour. The job consisted of 6,400 units and was completed in 24,600 hours at a total labor cost of $312,900. What is the direct labor efficiency variance?

Multiple Choice

  • $17,700 unfavorable.
  • $17,700 favorable.
  • $12,000 unfavorable.
  • $12,000 favorable.
  • $5,700 unfavorable.

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