Shade Company adopted a standard cost system several years ago. The standard costs for direct labor and direct materials for its single product are as follows: Materials (5 kilograms $12/kilogram) = $60/unit; direct labor (3.5 hours/unit $20/hour) = $70/unit. All materials are issued at the beginning of processing. The operating data shown below were taken from the records for December:

In-process beginning inventory		None
In-process ending inventory80% complete as to labor		980	units
Units completed during the period		6,740	units
Budgeted output		7,260	units
Purchases of materials (in kilograms)		41,000
Total actual direct labor cost incurred	$	531,864
Direct labor hours worked (AQ)		26,700	hours
Materials purchase-price variance	$	2,460	favorable
Increase in materials inventory in December		2,050	kilograms

The direct labor efficiency variance for December, to the nearest dollar, was:

Multiple Choice

• $5,184 favorable.

• $7,320 unfavorable.

• $2,136 favorable.

• $59,490 unfavorable.