Fletcher Company Collected the Following Data Regarding Production of One

Multiple Choice

Fletcher Company collected the following data regarding production of one of its products. Compute the direct labor efficiency variance. $\begin{array}{llr} \text { Direct labor standard (2 hrs. @ \$12.75/hr.) } &\$25.50& \text { per finished unit } \\ \text { Actual direct labor hours} &81,500& \text {hrs. } \\ \text {Actual finished units produced } &40,000& \text {units } \\ \text { Actual cost of direct labor } &\$1,100,250\\\end{array}$

A) $80,250 unfavorable.
B) $19,125 favorable.
C) $80,250 favorable.
D) $19,125 unfavorable.
E) $61,125 favorable.