The Sweet Mimi Pie Company makes delicious gourmet blackberry pies. Budgeted production for the current year was 4,000 pies, however, the company exceeded expectations with actual production of 4,200 pies. Budgeted (Standards). Direct Labor - 1 direct labor hour per pie @ \$10.00 per hour Direct Materials - 2 pounds of blackberries per pie @ $3.00 per pound Variable Overhead - POR \$2 per direct labor hour (Total Budgeted \$8,000) Actual Direct Materials - Purchased and used 8,800 pounds of blackberries @ \$2.80 per pound. Direct Labor - 4,320 actual direct labor hours @ \$9.25 per hour The direct labor rate variance: 1) $1,200 unfavorable. 2) $3,240 unfavorable. 3) $1,200 favorable. 4) \$3,240 favorable