Fletcher Company Collected the Following Data Regarding Production of One

Fletcher Company collected the following data regarding production of one of its products. Compute the direct labor efficiency variance. $\begin{array}{lrl}\text { Direct labor standard (2hrs. @, } \$ 12.75 / \mathrm{hr} .) & \$ 5.50&\text {per finished} \\&&\text {unit}\\\text { Actual direct labor hours } & 81,500 &\text {hrs.} \\\text { Actual finished units produced } & 40,000&\text {units}\\\text { Actual cost of direct labor } & \$ 1,100,250\end{array}$

A) $19,125 favorable.
B) $80,250 favorable.
C) $61,125 favorable.
D) $19,125 unfavorable.
E) $80,250 unfavorable.

Correct Answer:

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