Marv Company's Direct Labor Costs for Manufacturing Its Only Product

Multiple Choice

Marv Company's direct labor costs for manufacturing its only product were as follows for October: $\begin{array}{lrr}\text { Standard direct labor hours (DLHs) per unit of product } & 2 \\\text { Budgeted finished units for the period } & 6,000 \\\text { Actual number of finished units produced } & 5,000 \\\text { Standard wage rate per direct labor hour (SP) } & \$ 20.00 \\\text { Direct labor costs incurred } & \$ 207,000 \\\text { Actual wage rate per direct labor hour (AP) } & \$ 18.00\end{array}$ The direct labor efficiency variance for October, rounded to the nearest dollar, was:

A) $3,000 unfavorable.
B) $20,000 favorable.
C) $23,000 favorable.
D) $30,000 unfavorable.
E) $50,000 unfavorable.