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 is 1,200 units.

l Production required 2,910 direct labor hours at a cost of $33,174. l

Actual production is 1,150 units.

What is the direct labor efficiency variance?

A.

$404.25 Unfavorable

B.

$404.25 Favorable

C.

$1,039.50 Unfavorable

D.

$1,039.50 Favorable