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 x $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 The direct labor rate variance for December was: None 1,070 units 6,920 units 7,530 units 45,500 $ 547,308 27,600 hours $ 6,825 favorable 4,300 kilograma