Test Company uses a standard costing system. The company developed the following standard cost sheet for one of its products.

Direct materials	(6 lbs. @ $5 per lb.)	$30
Direct labor	(1.5 hours @ $10 per hour)	15

During the year, Test Company recorded the following actual results.

Units produced		12,000
Direct materials	(71,750 lbs. purchased and used)	$365,925
Direct labor	(17,900 hours)	182,580

Determine the direct labor rate variance.

		$3,580 favorable
		$1,020 unfavorable
		$1,020 favorable
		$3,580 unfavorable