The following data relate to direct labor costs for the month of October:

Actual costs 35,000 hours of labor at $23.00/hour

Standard costs 36,000 hours of labor at $22.50/hour

What is the direct labor efficiency variance for October?

$5,000 favorable

$17,500 unfavorable

$18,000 unfavorable

$22,500 favorable

Variances from standard costs are normally reported to:

a. suppliers c. creditors such as the bank

b. management d. stockholders