Question $26$

Carlton Corporation produces and sells production and sale of $1,000$ handbags; however, $900$ handbags were actually produced and sold. Each bag has a standard requiring two yards of material at a cost of $$4\mathrm{.}00$ per yard and $1$ hour of assembly time at a cost of $$9\mathrm{.}50$ per hour. Actual costs for the production of $900$ bags were $$7,215$ for materials yards purchased and used $$3\mathrm{.}90$ per yard$)$ and $$10,125$ for labor $(1,125$ hours @ $$9\mathrm{.}00$ per hour$).$

Carlton's direct labor efficiency variance is:

$$562\mathrm{.}50F$

$$2,025\mathrm{.}00F$