7

Flapjack Corporation had 7,865 actual direct labor hours at an actual rate of $12.10 per hour. Original production had been budgeted for 1,100 units, but only 977 units were actually produced. Labor standards were 7.1 hours per completed unit at a standard rate of $12.90 per hour.

The direct labor rate variance is

$6,292.00 unfavorable

$6,292.00 favorable

$12,012.88 unfavorable

$12,012.88 favorable