Harris Manufacturing Produces White Sauce How Much the Direct Labor Efficiency Variance for 2014?
A)

Harris Manufacturing produces white sauce. It uses units as the cost driver for overhead. The following information was provided concerning its standard cost system for 2014:
$\begin{array}{ll}\text { Budgeted and Standard Data }&\text { Actual Data }\\\begin{array}{|l|l|}\hline \text { Material } & 1 / 41 \mathrm{~b} . @ \$ 14 \text { per pound } \\\hline \text { Labor } & 1.4 \mathrm{hrs} @ \$ 16 \text { per hour } \\\hline \text { Total fixed overhead } & \$ 84,000 \\\hline \text { Variable overhead } & \$ 6.50 \text { per unit } \\\hline \text { Production } & 6,000 \text { units }\\\hline \end{array}&\begin{array}{|l|l|}\hline \text { Produced } & 6,200 \text { units } \\\hline \text { Materials purchased } & 1,600 \mathrm{lbs} . \text { for } \$ 13.70 / \text { pound } \\\hline \text { Materials used } & 1,520 \mathrm{lbs} . \\\hline \text { Labor worked } & 8,740 \mathrm{hrs} . \text { at } \$ 15.90 / \text { hour } \\\hline \text { Total overhead } & \$ 122,000\\\hline\end{array}\end{array}$
How much the direct labor efficiency variance for 2014?

A) $874 favorable
B) $86 unfavorable
C) $960 unfavorable
D) $5,440 unfavorable