Palo Corp. manufactures a product with direct labor standards of 3 hours per unit at $15.00 per hour. During March, 2,000 units were produced using 5,800 hours at $15.25 per hour. The direct labor efficiency variance is:

a. $1,550 favorable. b. $1,550 unfavorable. c. $3,000 favorable. d. $3,050 favorable.