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 x $12.00/kilogram) = $60.00/unit; direct labor (3.5 hours/unit x $20.00/hour) = $70.00/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 In-process ending inventory-80% complete as to labor None Units completed during the period Budgeted output Purchases of materials (in kilograms) Total actual direct labor cost incurred Direct labor hours worked (AQ) Materials purchase-price variance Increase in materials inventory in December 960 units 6,700 units 7,200 units 40,000 $528,410 26,500 hours $ 1,600 favorabl 1,550 kilogram The direct labor flexible-budget variance for December (rounded to the nearest dollar) was: Multiple Choice $5,650 unfavorable.Correct $7,040 unfavorable. $1,590 favorable. $9,830 unfavorable.