Grubber Candy Corporation has developed cost standards for the production of its new chocolate, Choco. The variable cost standards below relate to each 10 gallon batch of Choco: Standard Cost Per Batch Milk chocolate (2 pounds x $0.85 per pound) $ 1.70 Direct labor (1.25 hours x $12.00 per hour) $ 15.00 Variable overhead (1.25 hours x $44.00 per hour) $ 55.00 Variable manufacturing overhead at Grubber is applied based on direct labor-hours. The actual results for last month were as follows: Number of batches produced Direct labor hours incurred Pounds of chocolate purchased Pounds of chocolate used in production Cost of chocolate purchased Direct labor cost Variable manufacturing overhead cost What is Choco's labor rate variance? 3,800 4,510 9,000 7,880 $ 7200 $ 53,218 $ 205,700 Select one: O A $2,880 Favorable OB. $902 Favorable OC. $14,432 Favorable OD. $3,782 Favorable