The Actual Cost of Direct Labor Per Hour Is $16

Multiple Choice

The actual cost of direct labor per hour is $16.00 and the standard cost of direct labor per hour is $15.50.The direct labor hours allowed per finished unit is 0.5 hour.During the current period,5,500 units of finished goods were produced using 3,000 direct labor hours.How much is the direct labor efficiency variance?

A) $3,875 unfavorable
B) $3,875 favorable
C) $4,000 favorable
D) $4,000 unfavorable