A. The direct labor efficiency variance is calculated as follows: (Actual Hours - Standard Hours for Actual Output) × Standard Rate. This incorrect answer results from using the standard hours for the actual output (1.25 DLH × 5,200 = 6,500 DLH) instead of the actual hours and the standard hours for the planned output (1.25 DLH × 5,000 = 6,250 DLH) instead of the standard hours for the actual output. See the correct answer for a complete explanation.

B. This is the difference between actual costs and budgeted costs (master budget). This is not the direct labor efficiency variance. See the correct answer for a complete explanation.

C. The direct labor efficiency variance is calculated as follows: (Actual Hours - Standard Hours for Actual Output) × Standard Rate. This incorrect answer of $4,200 unfavorable results from using the standard hours for the initially planned output of 5,000 units or master budget figure (1.25 DLH × 5,000 = 6,250 DLH) instead of the standard hours allowed for the actual output.  See the correct answer for a complete explanation.

D. The direct labor efficiency variance is calculated as follows: (Actual Hours - Standard Hours for Actual Output) × Standard Rate. The standard hours for the actual output were 6,500 (1.25 DLH × 5,200 actual units produced). The standard rate is $12. Thus, the direct labor efficiency variance is (6,600 - 6,500) × $12/DLH = $1,200 unfavorable. Since the actual hours were greater than the standard hours for the actual output, the variance is unfavorable.