Ally Mfg. uses a standard cost system and its July production of 3,600 units involved actual direct labor costs of $452,600 for 7,300 hours worked. The budget for July called for production of 3,800 units with 7,600 direct labor hours at $58.00 per hour. Ally's direct labor rate variance for July, to the nearest dollar, was: O O O O O $3,800 unfavorable. $5,800 unfavorable. $25,400 favorable. $29,200 unfavorable. $35,000 unfavorable.