The following information is presented for the Maybeel Manufacturing Company.

Direct labor rate standard is$11.55.

Direct labor efficiency standard is 2.5 hours per unit.

Budgeted production is1,200 units.

Production required2,910 direct labor hours at a cost of$33,174.

Actual production is1,150 units.

What is the direct labor efficiencyvariance?

A.

$1,039.50 Favorable

B.

$404.25 Unfavorable

C.

$404.25 Favorable

D.

$1,039.50 Unfavorable