The standard costs and actual costs for direct materials, direct labor, and factory overhead for the manufacture of 2,500 units of product are as follows: Standard Costs Direct materials 2,500 kilograms @ $8 Direct labor 7,500 hours @ $12 Actual Costs Direct materials 2,600 kilograms @ $8.75 Direct labor 7,400 hours @ $11.40 Factory overhead (100% capacity = 10,000 hrs.): Variable cost @ $2 per hour Total variable cost, $18,000 Fixed cost @ $.80 per hour Total fixed cost, $8,000 The amount of the direct labor rate variance is a. $4,400 unfavorable b. $4,500 favorable c. $4,400 favorable d. $4,500 unfavorable