Shade Company adopted a standard cost system several years ago. The standard costs for direct labor and direct materials for its single product are as follows: Materials (5 kilograms $12 per kilogram) = $60 per unit; direct labor (3.5 hours per unit $20 per hour) = $70 per unit. All materials are issued at the beginning of processing. The operating data shown below were taken from the records for December:

In-process beginning inventory	None
In-process ending inventory80% complete as to labor	1,050	units
Units completed during the period	6,880	units
Budgeted output	7,470	units
Purchases of materials (in kilograms)	44,500
Total actual direct labor cost incurred	$ 543,890
Direct labor hours worked (AQ)	27,400	hours
Materials purchase-price variance	$ 5,785	favorable
Increase in materials inventory in December	3,800	kilograms

The direct labor rate variance for December was:

Multiple Choice

$4,110 favorable.

$8,170 favorable.

$10,310 unfavorable.

$26,930 unfavorable.

$61,930 unfavorable.