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 efficiency variance for December was:

Multiple Choice

$5,880 favorable.

$1,960 favorable.

$7,840 unfavorable.

$60,010 unfavorable.

$9,074 unfavorable