Machine Builders Inc. adopted a standard cost system several years ago that it uses in conjunction with its process cost system. The per-unit standard costs for direct materials and direct labor for its single product are as follows:

Materials:	(6 kilograms $10 per kilogram)	$	60
Labor:	(8 hours $19 per hour)	$	152

All materials are issued at the beginning of processing. The operating data shown below were taken from the records for July:

In-process beginning inventory		none
In-process ending inventory90% complete as to labor		1,000	units
Units completed during the month		6,750	units
Budgeted output		7,500	units
Purchases of materials, in kilograms (AQ)		33,000
Total actual labor costs incurred	$	526,000
Direct labor hours worked (AQ)		25,000	hours
Materials purchase-price variance	$	3,800	unfavorable
Increase in materials inventory in July		1,700	kilograms
Beginning inventory of materials		0	kg.

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

Multiple Choice

$616,600 unfavorable.

$687,800 favorable.

$615,800 unfavorable.

$615,200 favorable.

$623,000 favorable.