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: Direct materials Direct labor Standard Quantity 5 pounds 1.90 hours Standard Price or Rate $3.20 per pound $11.00 per hour Standard Cost $16.00 $20.90 During May, Jackson purchased 96,750 pounds of direct material at a total cost of $328,950. The total factory wages for May were $372,600, 90 percent of which were for direct labor. Jackson manufactured 16,000 units of product during May using 77,300 pounds of direct material and 30,900 direct labor-hours. The labor rate variance for May is: $4,560 Favorable $3,360 Unfavorable $4,560 Unfavorable 0 $2,160 Favorable