The budget for the month of May was for 10,400 units at a direct materials cost of $17 per unit. Direct labor was budgeted at 26 minutes per unit for a total of $93,600. Actual output for the month was 8,700 units with $132,500 in direct materials and $79,775 in direct labor expense. The direct labor standard of 26 minutes was obtained throughout the month. Variance analysis of the performance for the month of May would show a(n): (CMA adapted) Multiple Choice favorable materials efficiency (quantity) variance of $7,700. favorable direct labor efficiency variance of $1,475. unfavorable direct labor efficiency variance of $1,475. unfavorable direct labor price (rate) variance of $1,475.