The following data pertain to Nell Company's operations for June:

	Standard quantity of materials per unit of product......	5 pounds
	Standard cost of materials per pound..........................	$0.20
	Standard direct labor hours.........................................	0.04 hours
	Standard wage rate per hour........................................	$7.00
	Actual output...............................................................	100,000 units
	Materials purchased.....................................................	100,000 pounds
	Actual cost of materials purchased per pound............	$0.17
	Materials used.............................................................	60,000 pounds
	Actual direct labor hours required...............................	3,900 hours
	Actual direct labor cost per hour.................................	$7.20

The materials price variance is recognized when materials are purchased.

1. Nell's materials price variance for June was:

A) $3,000 favorable

B) $3,000 unfavorable

C) $2,000 favorable

D) $2,000 unfavorable

2. Nell's labor efficiency variance for June was:

A) $780 favorable

B) $780 unfavorable

C) $700 favorable

D) $700 unfavorable