Polaco Corporation makes a product that has the following direct labor standards: Standard direct labor-hours 0.4hours per unitStandard direct labor rate$24.00per hour?In May the company produced 8,500 units using 3,220 direct labor-hours. The actual direct labor rate was $22.10 per hour.?The labor efficiency variance for May is:
A. $4,320 F
B. $3,978 F
C. $3,978 U
D. $4,320 U
Answer: A
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