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?
a) $3,920 unfavorable
b) $1,120 unfavorable
c) $1,120 favorable
d) $3,920 favorable