Use the following data to find the direct labor efficiency variance if the company produced 3,500 units during the period. Direct labor standard (4 hrs. @ $6.95/hr.) $ 27.80 per unit Actual hours worked 12,400 Actual rate per hour $ 7.50 Multiple Choice

$6,820 favorable.

$6,820 unfavorable.

$11,120 favorable.

$7,700 favorable.

$7,700 unfavorable.