Answer:
$1,744,000.00 (U)
Explanation
First, calculate the standard hours (the hours of labor the work should have taken):
HOURS PREDICTED =
UNITS PRODUCED *
STANDARD LABOR PER UNIT2,400.00 = 3,000.00 * 0.80
Next, figure out how many hours more than the expected (standard) were used:
MORE HOURS THAN STANDARD =
HOURS SPENT -
HOURS PREDICTED43,600.00 = 46,000.00 - 2,400.00
Finally, multiply the result by the labor rate:
LABOR EFFICIENCY VARIANCE =
MORE HOURS THAN STANDARD *
LABOR COST PER HOUR$1,744,000.00 = 43,600.00 * $40
Because the variance is positive, the variance is considered unfavorable.