The Following Information Is Presented for the Maybeel Manufacturing Company

Multiple Choice

The following information is presented for the Maybeel Manufacturing Company.
- Direct labor rate standard is $11.55.
- Direct labor efficiency standard is 2.5 hours per unit.
- Budgeted production is 1,200 units.
- Production required 2,910 direct labor hours at a cost of $33,174.
- Actual production is 1,150 units.
What is the direct labor efficiency variance?

A) $404.25 Favorable
B) $404.25 Unfavorable
C) $1,039.50 Favorable
D) $1,039.50 Unfavorable