This information is used for the first 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 $18,000 for 600 hours of work. Standards have been set as follows: Direct Materials: 2 pounds @ $1.10 per pound .5 hours @ $32 per hour Direct Labor The materials quantity variance is: $880 unfavorable $ 420 favorable $110 unfavorable $110 favorable $880 favorable