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 In-process ending inventory-80% complete as to labor Units completed during the period Budgeted output Purchases of materials (in kilograms) Total actual direct labor cost incurred Direct labor hours worked (AQ) Materials purchase-price variance Increase in materials inventory in December None 1,040 units 6,860 units 7,440 units 44,000 $ 542,178 27,300 hours $ 5,280 favorable 3,550 kilograms The direct labor rate variance for December was: Multiple Choice $3,822 favorable $7,882 favorable $10,022 unfavorable. $26,642 unfavorable