Hassock Corp. produces woven wall hangings. It takes 2 hours of direct labor to produce a single wall hanging. Hassock's standard labor cost is $14 per hour. During August, Hassock produced 8,000 units and used 16,140 hours of direct labor at a total cost of $222,960. What is Hassock's labor efficiency variance for August?

• $3,920 favorable.
• $1,960 favorable.
• $4,960 unfavorable.
• $1,960 unfavorable.
• $1,040 unfavorable.