Palmetto Orchards, Inc. developed the following standard costs for direct labor for one of their products, the apple pie:

Standard quantity Standard price

Direct labor 0.25 hours $14.25 per hour

Budgeted production in its static planning budget is 1,000 pies for September.

During September, Palmetto actually produced and sold 1,100 pies using 280 direct labor hours at an actual wage rate of $15.00 per hour.

Septembers direct labor efficiency variance is:

$71.25 unfavorable

$285.00 favorable

$450.00 unfavorable

$75.00 unfavorable