Using the Labor Time Standard of 0 A) $3,960 (F)
B) $3,960 (U)
C) $4,500 (U)
D)

Multiple Choice

Using the labor time standard of 0.5 labor hour per unit and a labor cost standard of $10 per labor hour for a 10 pound bag of chocolate and the following actual cost and usage data,compute the direct labor efficiency variance.
$\begin{array}{ll}\text { Number of units produced } & 4,000 \\\text { Standard direct labor hours per unit } & 2 \\\text { Standard variable overhead rate } & \$ 2.50 \text { per hour } \\\text { Standard fixed overhead rate } & \$ 5.00 \text { per hour } \\\text { Budgeted fixed overhead costs } & \$ 40,800 \\\text { Actual variable overhead costs } & \$ 16,800 \\\text { Actual fixed overhead costs } & \$ 40,400 \\\text { Actual labor hours } & 8,000 \text { direct labor hours} \\\text { Total actual overhead } & \$ 57.200\end{array}$

A) $3,960 (F)
B) $3,960 (U)
C) $4,500 (U)
D) $4,500 (F)