Blue Inc uses a standard costing system. During the last month, the following variance was reported.

Direct labor efficiency variance $1,000 Unfavorable

Blue Inc's standard direct labor rate is $5 per hour and 4 hours of direct labor are allowed per unit produced. During the last month, the company actually used 20% more direct labor hours that should have been used.

1) How many units of product (i.e. actual outputs) were produced during the month?

2) What should be the direct labor rate variance if the actual direct labor costs incurred during the month (AH x AR) were $5,400?