Hassock Corp. produces woven wall hangings. It takes 2 hours of direct labor to produce a single wall hanging. Hassock's standard labor cost is $12 per hour. During August, Hassock produced 10,000 units and used 21,040 hours of direct labor at a total cost of $250,376. What is Hassock's labor efficiency variance for August?

A. $14,584 unfavorable.
B. $12,480 unfavorable.
C. $10,376 unfavorable.
D. $12,480 favorable.
E. $4,160 favorable.


Answer: B

Business

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