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		970	units
Units completed during the period		6,720	units
Budgeted output		7,230	units
Purchases of materials (in kilograms)		40,500
Total actual direct labor cost incurred	$	530,138
Direct labor hours worked (AQ)		26,600	hours
Materials purchase-price variance	$	2,025	favorable
Increase in materials inventory in December		1,800	kilograms

The direct labor flexible-budget variance for December (rounded to the nearest dollar) was:

Multiple Choice

• $1,862 favorable.

• $10,142 unfavorable.

• $7,080 unfavorable.

• $5,418 unfavorable.