Comtree Inc. applies overhead based on machine hours.In the month just ended, the companyused 17,000 direct labour hours to produce 7,000 units.The standard amount of labour per unit is 2.5DLH.According to the standards each unit requires 1.2 machine hours.During the period 9,100 machine hours were used.

Which of the following statements is true?

Group of answer choices

The labour efficiency variance was unfavourable and the overhead efficiency variance was favourable.

The labour efficiency variance and the overhead efficiency variance were both unfavourable.

The labour efficiency variance was favourable and the overhead efficiency variance was unfavourable.

The labour efficiency variance and the overhead efficiency variance were both favourable.