A companys standard labour rate for its factory workers is set at $5 per hour.

The standard time allowed for producing one unit is 20 minutes.

During the period 4,800 units were produced and the factory workers were paid $5.25 per hour. The actual hours worked were 1,560.

What was the total labour cost variance?

a.

$190 adverse

b.

$390 favourable

c.

$390 adverse

d.

$190 favourable