A company uses the following standard costs to produce a single unit of output.

Direct materials	5 pounds at $0.60 per pound	=	$	3.00
Direct labor	0.60 hour at $8.00 per hour	=	$	4.80
Manufacturing overhead	0.60 hour at $3.30 per hour	=	$	1.98

During the latest month, the company purchased and used 45,000 pounds of direct materials at a price of $0.7 per pound to produce 10,000 units of output. Direct labor costs for the month totaled $44,536 based on 5,860 direct labor hours worked. Variable manufacturing overhead costs incurred totaled $16,800 and fixed manufacturing overhead incurred was $14,000. Based on this information, the direct labor rate variance for the month was:

Multiple Choice

• $3,464 unfavorable

• $1,120 unfavorable

• $2,344 favorable

• $1,120 favorable

• $3,464 favorable