Cole developed the following standard costs for direct material and direct labor for one of their major products, the 30-gallon heavy-duty plastic container.

	Standard Quantity	Standard Price
Direct materials	0.20 pounds	$25 per pound
Direct labor	0.10 hours	$15 per hour

During May, Cole produced and sold 10,000 containers using 2,200 pounds of direct materials at an average cost per pound of $24 and 1,050 direct labor hours at an average wage of $14.75 per hour.

May's direct labor rate variance was:

$262.50 favorable.

indeterminable using the information provided

$487.50 favorable.

$750.00 unfavorable.