The standard costs and actual costs for direct labor for the manufacture of 2,500 actual units of product are as follows: Standard Costs Direct labor 7,500 hours @ $11.80 Actual Costs Direct 7,400 hours @ $11.40 labor The direct labor rate variance is 1) $4,500 unfavorable 2) s2.960 favorable 3) $4,500 favorable 4) s2.960 unfavorable