Shelley Company bought 3,000 pounds of materials for $3,750. They used 2,800 pounds to produce 1,450 units of output. Direct labor costs totaled $18,000 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 $4.000 favorable $4,000 unfavorable $2.000 unfavorable