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:

	Standard Quantity		Standard Price or Rate		Standard Cost
Direct materials	5	pounds	$4.90	per pound	$24.50
Direct labor	2.70	hours	$8.00	per hour	$21.60

During May, Jackson purchased 139,500 pounds of direct material at a total cost of $711,450. The total factory wages for May were $574,700, 90 percent of which were for direct labor. Jackson manufactured 24,000 units of product during May using 116,500 pounds of direct material and 65,300 direct labor-hours. The labor rate variance for May is:

$5,170 Favorable

$3,970 Unfavorable

$5,170 Unfavorable

$2,770 Favorable