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Use this information for Flapjack Corporation to answer the question that follows.
Flapjack Corporation had 7,978 actual direct labor hours at an actual rate of $12.10 per hour. Original production had been budgeted for 1,100 units, but only 991 units were actually produced. Labor standards were 7.1 hours per completed unit at a standard rate of $12.93 per hour.
Problem 1: The direct labor rate variance is
Option 1: $6,621.74 unfavorable
Option 2: $6,621.74 favorable
Option 3: $11,768.73 unfavorable
Option 4: $11,768.73 favorable
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