Ally Mfg. uses a standard cost system and its July production of 3,200 units involved actual direct labor costs of $377,000 for 6,500 hours worked (AQ). The budget for July called for production of 3,400 units with 6,800 direct labor hours at $54.00 per hour (SP). Ally's direct labor efficiency variance for July, to the nearest dollar, was: Multiple Choice $31,400 unfavorable $22,600 favorable. $5,400 unfavorable. $26,000 unfavorable. Multiple Choice $31,400 unfavorable. $22,600 favorable. $5,400 unfavorable, $26,000 unfavorable. $3,400 unfavorable