Kizspy Question: 13
(Choose 1 answer)
The budgeted direct labor cost is $12 per hour, with an expected usage of 1,000 hours for a production level of
5,000 units. However, actual labor hours were 1,100 hours to produce the same level of output. Calculate the
Direct Labor Efficiency Variance.
A. $5,500, favorable
B. $5,500, unfavorable
C. $1,200, unfavorable
D. $1,200, favorable
