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: O $420 unfavorable O $420 favorable O $450 unfavorable O $450 favorable $230 favorable