Dexter Surgical Tools Has Set the Following Direct Labour Standard

Multiple Choice

Dexter Surgical Tools has set the following direct labour standard: 0.5 hours at $20 per hour, for each unit of Tool #11. The company plans to produce 1200 units of Tool #11 in July; however, the actual production was 1000 units and only 900 units were actually sold. The actual labour cost for July was $22 per hour.
The labour efficiency variance for July was

A) $1200 Favourable.
B) $1200 Unfavourable.
C) $1000 Favourable.
D) $1000 Unfavourable.