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 7,000 hours at $16.00 per hr Actual costs Direct labor 7,700 hours at $14.00 per hr The direct labor rate variance is O $14,000 favorable O $15,400 favorable O $14,000 unfavorable O $15,400 unfavorable