Mandy Company has the following information from last month:

Standard direct labor hours allowed for units produced (SQ)		3,700
Actual direct labor hours worked (AQ)		3,600
Direct labor efficiency variance, favorable (F)	$	5,000
Total payroll	$	198,000

What was Mandy's direct labor flexible-budget variance for the month, rounded to the nearest dollar?

Multiple Choice

$18,000 unfavorable.

$36,500 favorable.

$13,000 unfavorable.

$31,500 favorable.

$68,500 favorable.