Sunrise Company produces a single product. The company using standard costing with the following standards:

Standard quantity per unit: DM - 2.7lbs DL - 2.5 hours

Standard price or rate: DM - ? DL - $9 per hour

During the last month, the company purchased 6,400 pounds of DM at a cost of $70,400 and used 4,300 pounds for production. Direct labor cost totaled $32,000 for the month. The following variances have been calculated for the month:

Calculate the Labor Efficiency Variance.

PLEASE SHOW YOUR WORK

DM purchase price variance DM Quantity variance Labor Rate variance S3.200 Unfavorable $1,575 Unfavorable S500 Favorable