Nutella Preserves Company makes high quality jams and jellies. They have a direct labor standard of 4 hours per unit of output. Each employee has a standard wage rate of $11.10 per hour. During February, Nutella paid $100,000 to employees for 9,210 hours worked. 2,480 units were produced during February. What is the direct labor efficiency variance?

Multiple Choice

• $1,383 favorable

• $10,112 favorable

• $7,881 favorable

• $2,231 favorable