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: Materials: 4 kilograms/unit x $10.00 per kilogram = $40.00/unit;labor: (4 hours x $18.00 per hour) $72.00/unit.All materials are issued at the beginning of processing.The operating data shown below were taken from the records for July:
The direct labor efficiency variance for July was:

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