The Flapjack Corporation had 7,824 actual direct labor hours at an actual rate of $12.25 per hour. Original production had been budgeted for 1,100 units, but only 978 units were actually produced. Labor standards were 7.2 hours per completed unit at a standard rate of $12.75 per hour.

Round your answer to the nearest cent.

The labor time variance is

$3,896.35 unfavorable

$3,896.35 favorable

$9,975.60 unfavorable

$9,975.60 favorable