Action Manipulation Manufacturing's (AMM) standards anticipate that there will be 6 pounds of raw material used for every unit of finished goods produced. AMM began the month of May with 7,500 pounds of raw material purchased 33,600 pounds for $47,040 and ended the month with 6,000 pounds on hand. The company produced 5,600 units of finished goods. The company estimates standard costs at $1.60 per pound. The materials price and efficiency variances for the month of May were as follows: . O 1. Price Variance Efficiency Variance $2,400 F $6.720 U O 2. Price Variance Efficiency Variance $0 $6,720 F O 3. Price Variance Efficiency Variance $2,400 U $7,020 F 4. Price Variance $6.720 F Efficiency Variance $2,400 U