Answer:
$-182,000.00 (F)
Explanation
First, calculate the standard hours (the hours of labor the work should have taken):
HOURS PREDICTED =
UNITS PRODUCED *
STANDARD LABOR PER UNIT101,200.00 = 23,000.00 * 4.40
Next, figure out how many hours more than the expected (standard) were used:
MORE HOURS THAN STANDARD =
HOURS SPENT -
HOURS PREDICTED-5,200.00 = 96,000.00 - 101,200.00
Finally, multiply the result by the labor rate:
LABOR EFFICIENCY VARIANCE =
MORE HOURS THAN STANDARD *
LABOR COST PER HOUR$-182,000.00 = -5,200.00 * $35
Because the variance is negative, the variance is considered favorable.