The Whitfield Co. uses a standard costing system and has established the following standards: Direct materials: 4 pounds at $8.00 per pound Direct labor: 1 hour at $16.00 per hour During July, Whitfield produced 6,000 units of its product and incurred the following actual costs: Direct materials: 25,200 pounds purchased and used at $8.20 per pound Direct labor: 5,600 hours worked at $15.30 per hour What was the labor rate variance for July? $3,920 unfavorable $1,120 unfavorable $1,120 favorable $3,920 favorable