Please help explain. Thank you

ABC Company makes a single product which has the following standards: Direct materials 2 kilograms $4.30 per kilogram Direct labor 3 hours $6.00 per hour Variable overhead 3 hours $6.50 per hour Fixed overhead 3 hours $9.00 per hour The following data pertain to June's operations: - Direct labor was $820,500 for 147,000 hours worked - Direct material purchases were 110,000 kilograms for $485,000 - Variable manufacturing overhead incurred was $986,000 - Fixed manufacturing overhead incurred was $1,154,500 - 93,000 kilograms of direct materials were used - The company sold 42,000 units at $130 each - Variable manufacturing overhead is applied based on direct labor hours - 46,000 units were produced during the year - Budgeted production was 45,000 units - At the beginning of June there were no inventories. The labor efficiency variance is: The labor efficiency variance is: Do not round intermediate calculations. Correct Answer $54000 Unfavorable $54000 Favorable \$61500 Unfavorable