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

Direct materials	8 pounds at $1.00 per pound	=	$	8.00
Direct labor	0.20 hour at $10.00 per hour	=	$	2.00
Manufacturing overhead	0.20 hour at $4.70 per hour	=	$	0.94

During the latest month, the company purchased and used 76,000 pounds of direct materials at a price of $1.1 per pound to produce 10,000 units of output. Direct labor costs for the month totaled $17,670 based on 1,860 direct labor hours worked. Variable manufacturing overhead costs incurred totaled $5,400 and fixed manufacturing overhead incurred was $20,000. Based on this information, the direct labor rate variance for the month was:

Multiple Choice

$1,400 favorable

$2,330 favorable

$930 favorable

$2,330 unfavorable

$1,400 unfavorable