The following standards/unit have been established for product B10: Standard direct labor cost 3 hour at $20 per hour The following data pertain to the most recent months operating during which 200 units of product B10 were made: Actual direct labor cost 620 hours at $18 per hour Which of the following is TRUE: Group of answer choices (1) Labor efficiency variance is unfavorable and labor rate variance is favorable (2) Labor efficiency variance is favorable and labor rate variance is unfavorable (3) Both labor efficiency variance and labor rate variance are favorable (4) Both labor efficiency variance and labor rate variance are unfavorable