Flapjack Corporation had 7,945 actual direct labor hours at an actual rate of $12.40 per hour. Original production had been budgeted for 1,100 units, but only 987 units were actually produced. Labor standards were 7.5 hours per completed unit at a standard rate of $13.14 per hour.
The Direct labor rate variance is:
a. $5,879.30 unfavorable
b. $5,879.30 favorable
c. $6,752.34 unfavorable
d. $6,752.34 favorable