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Shade Company adopted a standard cost system several years ago. The standard costs for direct...

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Accounting

Shade Company adopted a standard cost system several years ago. The standard costs for direct labor and direct materials for its single product are as follows: Materials (5 kilograms $12/kilogram) = $60/unit; direct labor (3.5 hours/unit $20/hour) = $70/unit. All materials are issued at the beginning of processing. The operating data shown below were taken from the records for December:

In-process beginning inventory None
In-process ending inventory80% complete as to labor 1,050 units
Units completed during the period 6,880 units
Budgeted output 7,470 units
Purchases of materials (in kilograms) 44,500
Total actual direct labor cost incurred $ 543,890
Direct labor hours worked (AQ) 27,400 hours
Materials purchase-price variance $ 5,785 favorable
Increase in materials inventory in December 3,800 kilograms

The direct labor efficiency variance for December, to the nearest dollar, was:

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