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.
$\begin{array}{lr}\text {Direct labor hours used }&\text {4,950 hours }\\\text { Total cost of direct labor}&\text {\$ 53,460 }\\\text {Number of good units prochuced }&\text { 9,000 units}\\\end{array}$

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