Solly Corporation Produces a Product for National Distribution

Multiple Choice

Solly Corporation produces a product for national distribution. Standards for the product are: Materials: 12 ounces per unit at 60¢ per ounce.
Labor: 2 hours per unit at $8 per hour.
During the month of December, the company produced 1,000 units. Information for the month follows:
Materials: 14,000 ounces purchased and used at a total cost of $7,700.
Labor: 2,500 hours worked at a total cost of $20,625.
The labor efficiency variance is:

A) $4,000 F
B) $4,125 F
C) $4,125 U
D) $4,000 U