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Earl Company's direct labor costs for the month of January follow: Actual direct labor hours 18,000 Standard direct labor hours 19,000 Direct labor rate variance--unfavorable

Earl Company's direct labor costs for the month of January follow:

Actual direct labor hours

18,000

Standard direct labor hours

19,000

Direct labor rate variance--unfavorable

$ 1,800

Total payroll

$117,000

What was Earl's direct labor efficiency variance?

a.

$6,500 favorable

b.

$6,400 unfavorable

c.

$1,800 favorable

d.

$6,400 favorable

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