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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.

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. @ $6.90/hr.) $ 27.60 per unit
Actual hours worked 11,800
Actual rate per hour $ 7.40

Multiple Choice

a. $5,900 unfavorable.

b. $7,000 unfavorable.

c. $7,000 favorable.

d. $15,180 favorable.

e. $5,900 favorable.

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