Jackson Industries uses a standard cost system in which direct materials inventory is carried at standard cost. Jackson has established the following standards for one unit of product: Standard Quantity Standard Price or Rate Standard Cost Direct materials 4 pounds $3.00 per pound $12.00 Direct labor 1.80 hours $10.00 per hour $18.00 During May, Jackson purchased 76,800 pounds of direct material at a total cost of $245,760. The total factory wages for May were $287,400, 90 percent of which were for direct labor. Jackson manufactured 15,000 units of product during May using 57,400 pounds of direct material and 27,500 direct labor-hours. The labor rate variance for May is: $16,340 Favorable $15,140 Unfavorable $16,340 Unfavorable $13,940 Favorable