Thomas Enterprises purchased 56,500 pounds (cost = $344,650) of direct material to be used in the manufacture of the company's sole product. According to the production specifications, each completed unit requires five pounds of direct material at a standard cost of $6.30 per pound. Direct materials consumed by the end of the period totaled 54,000 pounds in the manufacture of 11,000 finished units. An examination of Thomas payroll records revealed that the company worked 22,200 labor hours (cost = $259,740) during the period, and specifications called for each completed unit requiring two hours of labor at a standard cost of $12.00 per hour. Use the information to compute the following variances. Thomas direct-labor efficiency variance was:

Multiple Choice

• $2,340 F.

• $2,340 U.

• $2,400 F.

• $2,400 U.

• None of the answers is correct.