Answer:
The right answer is Option (D).
Explanation:
According to the Scenario, the given data is:
Standard cost : $14.80 / hour
Total working hour: 22,000 hour
Total units : 10,900 units
working hour for a single unit: 2 hours/unit
So, the direct-labor efficiency balance can be calculated as:
Direct-labor efficiency variance = Standard Cost × ( Total working hour - Standard working hour )
Where, Standard working hour = total units × working hours per unit
= 10900 × 2 = 21800 hours
So, Direct-labor efficiency variance = 14.80 × ( 22000 - 21800 )
= 14.80 × 200 = 2960 ( unfavorable )
Hence the correct answer is option (D).
