Roman Mfg.'s July production involved actual direct labor costs of $35,430 for 3,000 direct labor hours. The budget for the July level of production called for 3,100 direct labor hours at $11.80 per hour, using a standard cost system.

Roman's labor rate variance for July is:

• $30 unfavorable.
• $1,150 favorable.
• $1,180 favorable.
• $1,150 unfavorable.