The Lennon Company Uses a Standard Costing System and a Flexible

Multiple Choice

The Lennon Company uses a standard costing system and a flexible budget. At a normal level of activity of 15,000 units and 45,000 standard direct labor hours, the standard direct labor cost would be $270,000. During June, 44,950 hours were worked to produce 14,000 units at an actual direct labor cost of $352,000. The direct labor efficiency variance in June was

A) $25,700 (U) .
B) $17,700 (U) .
C) $17,700 (F) .
D) $20,700 (U) .