Jackson Industries uses a standard cost system in which direct materials inventory is carried at standard cost. Jackson has established the following standards for one unit of product. Direct materials. Direct labor............ Standard Quantity 5 pounds 1.25 hours Standard Price or Rate $3.60 per pound $12.00 per hour Standard Cost $18.00 $15.00 During May, Jackson purchased 125,000 pounds of direct material at a total cost of $475,000. The total factory wages for May were $364,000, 90 percent of which were for direct labor. Jackson manufactured 22,000 units of product during May using 108,000 pounds of direct material and 28,000 direct labor-hours. The labor rate variance for May is: $6,000 Favorable $8,400 Unfavorable O $8,400 Favorable O $7,200 Unfavorable