This information is used for the next four questions where you will calculate materials and labor variances. 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 $20,400 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 materials purchase price variance is: $420 unfavorable $420 favorable $450 unfavorable $450 favorable $230 favorable