Shelley Company bought 3,000 pounds of materials for $2,850. They used 2,800 pounds to produce 1,000 units of output. Direct labor costs totaled $20,400 for 600 hours of work. Standards have been set as follows: Direct Materials: 2 pounds @ $1.10 per pound Direct Labor:.5 hours@ $32 per hour The labor efficiency variance is: $1,200 favorable $1,200 unfavorable $3,200 tavorable $3,200 unfavorable $2.000 unfavorable