Joy Corporation manufactures a product with the following per unit standard costs:

Direct Materials 10 square yards at $6 per yard

Direct Labor 12 hours at $10 per hour

The following information relates to actual operations:

Direct materials purchased - 1000 square yards at $5 per yard

Direct materials used in production - 900 square yards

Direct labor cost = $10,000

Direct labor hours = 1,200

Actual output = 80 units

The direct labor efficiency variance is:

		a. $2000 favorable
		b. $2000 unfavorable
		c. $2400 favorable
		d. $2400 unfavorable