Question 4 The Cheers Company makes mugs for which the following standards have been developed: Standard Inputs Expected Standard Price Expected For Each Unit of Output Direct Materials 5 ounces Direct Labor 1.5 hours Per Unit of Input $2 per ounce $8 per hour 1 pts Production of 400 mugs was expected in July, but 440 mugs were actually completed. Direct materials purchased and used were 2,100 ounces at an actual price of $2.20 per ounce. Direct labor hours for the month were 590, and the actual pay per hour was $9.00. What is the direct labor rate variance for July? O $420 Favorable $420 Unfavorable $590 Favorable O $590 Unfavorable