Question - 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.
Production required 2,910 direct labor hours at a cost of $33,174.
Actual production is 1,150 units.
What is the direct labor efficiency variance?
A. $1,039.50 Favorable
B. $404.25 Unfavorable
C. $404.25 Favorable
D. $1,039.50 Unfavorable