The production of Saunders Company during July involved actual direct labor costs of $46,287for 3,700 direct labor hours. The budget for the July level of production called for 3,800 directlabor hours at $12.50 per hour, using a standard cost system.The company's labor efficiency variance for July is:$1,250 Favorable.$1,190 Favorable.$1,213 Unfavorable.$37 Unfavorable