Welch Company Budgeted the Following Cost Standards for the Current

Multiple Choice

Welch Company budgeted the following cost standards for the current year: Direct materials = 1.40 kilos per unit @ $1.50 per kilo
Direct labor = 0.75 hours per unit @ $6 per hour
Actual production and costs were as follows:
Units produced = 2,800
Direct materials used = 4,500 kg.
Direct materials purchased = 5,000 kg. @ a cost of $5,850
Direct labor incurred = 2,000 hours at a cost of $13,000
The labor efficiency variance was

A) $600 F
B) $400 U
C) $4,800 F
D) $1,000 U