A job was budgeted to require 3 hours of labor per unit at $8.00 per hour. The job consisted of 8,000 units and was completed in 22,000 hours at a total labor cost of $198,000. What is the direct labor efficiency variance?
A) $22,000 unfavorable.
B) $22,000 favorable.
C) $16,000 unfavorable.
D) $16,000 favorable.
E) $6,000 unfavorable.
Correct Answer:
Verified
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