Steep, Inc How Much Is the Labor Efficiency Variance?
A) $140 Favorable

Steep, Inc. budgeted 6,000 cup holders for March. Each holder is sold for $12. Actual production for March was 6,300 cup holders. Standards and actual costs follow for March:
$\begin{array}{|l|c|c|}\hline &\text { Standards }&\text { Actual }\\\hline \text { Materials } & 1.1 \text { pounds @ \$2.40 a pound } & \begin{array}{c}6,400 \text { pounds purchased for } \$ 15,040 \\6,450 \text { pounds used }\end{array} \\\hline \text { Labor } & 0.10 \text { hours @ } \$ 14.00 \text { per hour } & 620 \text { hours @ } \$ 14.30 \text { per hour } \\\hline \text { Variable overhead } & \$ 16,800 & \$ 18,400 \\\hline \text { Fixed overhead } & \$ 9,600 & \$ 10,300\\\hline\end{array}$
How much is the labor efficiency variance?

A) $140 favorable
B) $186 unfavorable
C) $46 unfavorable
D) $280 favorable