IB MC Qu. 21.107 (Algo) A company uses the following... A company uses the following standard costs to produce a single unit of output. During the latest month, the company purchased and used 58,000 pounds of direct moterials of a price of $1.00 per pound to produce 10,000 units of output. Direct labor costs for the month totaled $55,480 based on 5,840 direct labor hours worked. Varlable manufacturing overhead costs incurred totaled $20,600 and fixed manufacturing overheod incurred was $18,000 Based on this information, the direct labor efficiency variance for the month was: Multiple Choice $4,520 favorable $2,920 fovarable $1.600 unfavorable