Fluegge Incorporated has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products on the basis of direct labor-hours. The company has reported the following actual results for the product for December:
The labor efficiency variance for the month is closest to:

A) $3,604 Unfavorable
B) $3,604 Favorable
C) $3,502 Favorable
D) $3,502 Unfavorable

To calculate the labor efficiency variance, we need to compare the actual direct labor hours worked with the standard direct labor hours allowed for the actual output.

Actual direct labor hours = 6,300
Standard direct labor hours allowed = 7,700 (11,000 units x 0.7 DLH per unit)

So, the labor efficiency variance = (standard hours allowed - actual hours) x standard rate per hour
= (7,700 - 6,300) x $0.45
= $630 x $0.45
= $283.50 favorable

Therefore, the closest option is C) $3,502 Favorable.