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Question - The Flapjack Corporation had 7,664 actual direct labor hours at an actual rate of $12.20 per hour. Original production had been budgeted for 1,100 units, but only 952 units were actually produced. Labor standards were 7.3 hours per completed unit at a standard rate of $13.22 per hour. Compute the labor rate variance?
a. $7,817.28 unfavorable
b. $7,817.28 favorable
c. $9,016.46 unfavorable
d. $9,016.46 favorable
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