The Geurtz Company uses standard costing. The company makes and sells a single product called a Roff. The following data are for the month of August:

	Actual cost of direct material purchased and used: $147,735
	Material price variance: $7,035 unfavorable
	Total materials variance: $30,435 unfavorable
	Standard cost per pound of material: $6
	Standard cost per direct labor-hour: $6
	Actual direct labor-hours: 3,010 hours
	Labor efficiency variance: $5,400 favorable
	Standard number of direct labor-hours per unit of Roff: 1 hours
	Total labor variance: $3,594 unfavorable

The labor rate variance was:

a. $8,994 unfavorable

b. $1,806 unfavorable

c. $1,806 favorable

d. $8,994 favorable