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 In-process ending inventory-80% complete as to labor 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 None 990 units 6,760 units 7,290 units 41,500 $533,588 26,800 hours $ 2,905 favorable 2,300 kilograms 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 In-process ending inventory-80% complete as to labor 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 None 990 units 6,760 units 7,290 units 41,500 $533,588 26,800 hours $ 2,905 favorable 2,300 kilograms The direct labor efficiency variance for December, to the nearest dollar, was