Answer:
$-1,144,000.00 (F)
Explanation
First, calculate the standard hours (the hours of labor the work should have taken):
HOURS PREDICTED =
UNITS PRODUCED *
STANDARD LABOR PER UNIT56,000.00 = 16,000.00 * 3.50
Next, figure out how many hours more than the expected (standard) were used:
MORE HOURS THAN STANDARD =
HOURS SPENT -
HOURS PREDICTED-26,000.00 = 30,000.00 - 56,000.00
Finally, multiply the result by the labor rate:
LABOR EFFICIENCY VARIANCE =
MORE HOURS THAN STANDARD *
LABOR COST PER HOUR$-1,144,000.00 = -26,000.00 * $44
Because the variance is negative, the variance is considered favorable.