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
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. $4,440 unfavorable
b. $4,500 favorable.
c. $4,440 favorable
d. $4,500 unfavorable