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ABC manufacturing expects to use 2 Direct Labor Hours (DLH) for every unit produced, and expects to pay $12.00 per DLH.For the month, actual production

ABC manufacturing expects to use 2 Direct Labor Hours (DLH) for every unit produced, and expects to pay $12.00 per DLH.For the month, actual production was 4,000 units, actual DLH used were 9,000, and the actual rate paid per DLH was $12.50.The Direct Labor Efficiency Variance for the month was:

$12,000 favorable

$12,500 unfavorable

$12,000 unfavorable

$12,500 favorable

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