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 $18 per hour. During August, Hassock produced 10,950 units and used 22,140 hours of direct labor at a total cost of $395,720. What is Hassock's labor efficiency variance for August?

Group of answer choices

$4320 unfavorable.

$5600 favorable.

$4320 favorable.

$7120 unfavorable.

$1520 unfavorable.