Barnes Company Produces Men's Ties Barnes Produced and Sold 4,000 Ties During 2014

Multiple Choice

Barnes Company produces men's ties. The following budgeted amounts were provided by management for the current year:
$$\begin{array} { | l | c | c | } \hline \text { Category } & \text { Standard Inputs } & \text { Standard Cost } \\\hline \text { Direct materials } & 1.1 \text { yards per tee } & \text { \$4.00 per yard } \\\hline \text { Direct labor } & 0.32 \text { hours per tie } & \text { \$9.00 per hour } \\\hline\end{array}$$
Barnes produced and sold 4,000 ties during 2014. Actual performance for the year is:
$$\begin{array} { | l | l | l | r | } \hline { \text { Direct Materials } } && { \text { Direct Labor } } \\\hline \text { Yards used in production } & 4,100 & \text { Labor hours incurred } & 1,240 \\\hline \text { Yards purchased } & 3,900 & \text { Actual cost per hour } & \$ 9.25 \\\hline \text { Actual cost per yard } & \mathbf { \$ 3 . 7 5 } & & \\\hline\end{array}$$
How much is the labor efficiency variance?

A) $310 unfavorable
B) $360 favorable
C) $50 favorable
D) $1,000 unfavorable