The Following Information Describes a Company's Usage of Direct Labor

Multiple Choice

The following information describes a company's usage of direct labor in a recent period:
$\begin{array}{|l|r|}\hline \text { Actual direct labor hours used } & 44,000 \\\hline \text { Actual rate per hour } & \$ 20 \\\hline\text { Standard rate per hour } & \$ 18 \\\hline \text { Standard hours for units produced } & 42,000 \\\hline\end{array}$
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How much is the direct labor efficiency variance?

A) $40,000 unfavorable
B) $40,000 favorable
C) $36,000 favorable
D) $36,000 unfavorable