Use this information for Flapjack Corporation to answer the question that follows.

Flapjack Corporation had 7,849 actual direct labor hours at an actual rate of $12.10 per hour. Original production had been budgeted for 1,100 units, but only 975 units were actually produced. Labor standards were 7.8 hours per completed unit at a standard rate of $13.02 per hour.

The direct labor rate variance is

$7,221.08 unfavorable

$7,221.08 favorable

$2,922.99 unfavorable

$2,922.99 favorable