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The following labour standards have been established for a particular product:
Standard labour hours per unit of output 7.5 hours
Standard labour rate $15.25 per hour
The following data pertain to operations concerning the product for the last month:
Actual hours worked 9,600 hours
Actual total labour cost $144,480
Actual output 1,200 units
Problem 1: What was the labour rate variance for the month?
A) $240 unfavourable.
B) $1,920 unfavourable.
C) $240 favourable.
D) $1,920 favourable.
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