Action Manipulation Manufacturing's (AMM) standards anticipate that there will be 7 pounds of raw material used for every unit of finished goods produced. AMM began the month of May with 7,000 pounds of raw material, purchased 41,000 pounds for $77,900 and ended the month with 5,400 pounds on hand. The company produced 5,800 units of finished goods. The company estimates standard costs at $2.20 per pound. The materials price and efficiency variances for the month of May were as follows: O 1. Price Variance Efficiency Variance $4,400 F $12,300 U O2. Price Variance Efficiency Variance $0 $12,300 F 3. Price Variance Efficiency Variance $4,400 U $12,780 F O 4. Price Variance Efficiency Variance $4,400 U $12,300 F