Chhom Corporation Makes a Product Whose Direct Labor Standards Are

Multiple Choice

Chhom Corporation makes a product whose direct labor standards are 0.8 hours per unit and $25 per hour. In November the company produced 7,200 units using 5,260 direct labor-hours. The actual direct labor cost was $110,460.The labor efficiency variance for November is:

A) $33,540 Favorable
B) $12,500 Favorable
C) $12,500 Unfavorable
D) $33,540 Unfavorable