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	1,150	units
Units completed during the period	7,080	units
Budgeted output	7,770	units
Purchases of materials (in kilograms)	49,500
Total actual direct labor cost incurred	$ 560,900
Direct labor hours worked (AQ)	28,400	hours
Materials purchase-price variance	$ 11,385	favorable
Increase in materials inventory in December	6,300	kilograms

The direct labor rate variance for December was:

Multiple Choice

• $7,100 favorable.

• $11,160 favorable.

• $13,300 unfavorable.

• $29,920 unfavorable.

• $64,920 unfavorable.