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

Labor Efficiency Variance

The difference between the actual hours worked and the standard hours expected to produce a certain amount of goods, multiplied by the standard labor rate.

Direct Labor

Direct labor refers to the wages and salaries paid to employees directly involved in the production of goods or services.

Standard Labor Cost

The predetermined cost of labor that is expected for manufacturing a product or performing a service, used for budgeting and performance evaluation purposes.