nswer Corporation uses standard cost system. The standard costs and actual costs for direct materials, direct labor, and factory overhead for the manufacture of 2,500 units of product are as follows: Standard Costs Direct materials 2,500 kilograms @ $8 Direct labor 7,500 hours @ $12 Actual Costs Direct materials 2,600 kilograms @ $8.75 Direct labor 7,400 hours @ $11.40 Factory overhead (100% capacity - 10,000 hrs.): Variable cost @ $2 per hour Total variable cost, $18,000 Fixed cost @ $0.80 per hour Total fixed cost, $8,000 The amount of the direct labor rate variance is: a. $4,500 unfavorable. b. $4,440 unfavorable. c. $4,500 favorable. d. $4,440 favorable.