Yola co. manufactures one product with a standard direct labor cost of 4 hours at $12.00 per hour. during june, 1,000 units were produced using 4,100 hours at $12.20 per hour. the unfavorable direct labor efficiency variance was
a. $1,220
b. $1,200
c. $820
d. $400

Unfavorable direct labor efficiency variance =

B. $1,200

Explanation:

Provided information we have,

Standard hours for each unit = 4 hours

Standard hours for actual production = 1,000 4 = 4,000 hours

Actual hours used = 4,100 hours

Standard rate per hour = $12.00

Labor Efficiency Variance = (Standard Hours - Actual Hours) Standard Rate Per Hour

= (4,000 - 4,100) $12.00

= - $1,200

Thus, the correct option for above is

B. $1,200

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