Conwell manufactures specialty electronic circuitry through a unique photo-electronic process. One of the primary products, Model GT40, has a standard labor time of 0.5 hour and a standard labor rate of 7 dollars per hour. During March, the following activities pertaining to direct labor for GT40 were recorded:

Direct labor hours used 2,000

Direct labor cost 12,000 dollars

Units of GT40 manufactured 3,000

The labor rate and efficiency variances are:

Labor rate variance 2,000 Unfavorable, Labor efficiency variance 3,500 Favorable

Labor rate variance 1,000 Favorable, Labor efficiency variance 3,500 Favorable

Labor rate variance 2,000 Favorable, Labor efficiency variance 3,500 Unfavorable

Labor rate variance 2,000 Favorable, Labor efficiency variance 1,000 Favorable