The following additional information is available for the labor costs in question 2.

¢ Standard cost per unit of product 1.5 direct labor hours @ \($20\) per labor hour

¢ Actual use of direct labor is 8,250 hours @ \($22\) per hour The labor rate and the labor efficiency variances are:

a. \($16,500\) U labor rate variance and \($0\) labor efficiency variance

b. \($16,500\) F labor rate variance and \($0\) labor efficiency variance

c. \($16,500\) U labor rate variance and \($15,000\) U labor efficiency variance

d. None of the above