Safe and Sound Limited (SSL) produces chain link fencing for security fencing.

The standard prime costs for each metre of fencing is given below:

Standard material cost 400 meters wire

Direct labour hour 0.25 hour

During the year SSL produced 150,000 linear metres of their chain link product.

Actual costs during the period:

During the year, SSL purchased 75,000,000 metres of the raw wire used to make their product for a cost of $30,750,000. (This was the only stock used for all production this year)

SSL used 61,200,000 metres of wire (all at the purchased price per metre) and they worked 36,750 

Direct labour hours at a total cost of $1,572,510.

Calculate the Direct Labour Efficiency Variance