Chocolate Pty Ltd has set direct labour standards of 3 hours per unit and $5 per hour. During the month 2,900 hours at a total cost of $17,400 were used to produce 1,000 units. Determine the direct labour rate variance.

Select one:

a.$2,400 favourable

b.$2,400 unfavourable

c.$2,900 unfavourable

d.$2,900 favourable