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Hassock Corp. produces woven wall hangings. It takes 4 hours of direct labor to produce a single wall hanging. Hassocks standard labor cost is $16

Hassock Corp. produces woven wall hangings. It takes 4 hours of direct labor to produce a single wall hanging. Hassocks standard labor cost is $16 per hour. During August, Hassock produced 17,900 units and used 72,190 hours of direct labor at a total cost of $1,152,040. What is Hassocks labor efficiency variance for August?

$9,440 favorable.

$6,440 unfavorable.

$12,440 unfavorable.

$6,000 favorable.

$9,440 unfavorable.

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