Machine Builders Inc

Multiple Choice

Machine Builders Inc. adopted a standard cost system several years ago that it uses in conjunction with its process cost system. The per-unit standard costs for direct materials and direct labor for its single product are as follows:The direct labor efficiency variance for July, to the nearest dollar, was:

A) $6,600 favorable.
B) $7,200 unfavorable.
C) $8,000 unfavorable.
D) $14,400 favorable.
E) $79,200 favorable.