Fletcher Company collected the following data regarding production of one of its products. Compute the direct labor efficiency variance. Direct labor standard (2 hrs. @ $12.75/hr.)$25.50 per finished unitActual direct labor hours 81,500 hrs.Actual finished units produced 40,000 unitsActual cost of direct labor$1,100,250
A. $80,250 favorable.
B. $19,125 favorable.
C. $61,125 favorable.
D. $19,125 unfavorable.
E. $80,250 unfavorable.
Answer: D
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