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 per kilogram) = $60 per unit; direct labor (3.5 hours per unit $20 per hour) = $70 per 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 1,110 units Units completed during the period 7,000 units Budgeted output 7,650 units Purchases of materials (in kilograms) 47,500 Total actual direct labor cost incurred $ 554,120 Direct labor hours worked (AQ) 28,000 hours Materials purchase-price variance $ 9,025 favorable Increase in materials inventory in December 5,300 kilograms The direct labor flexible-budget variance for December was:

$7,640 unfavorable.

$5,880 favorable.

$14,720 unfavorable.

$1,960 unfavorable.

$9,148 unfavorable.