Company ABC produces one product the X21. Standard (budgeted) costs are as follows:

Direct Materials 2kg @ $10.50 per kg

Direct Labour 1hr @ $30 per hr

Actual results for the month of June were:

Units Produced 200 000

Direct Materials Used 500 000 kg @ $10.40 per kg

Wages Paid 210 000 hours @ $29.50 per hour

Required:

Calculate the Direct Labour Rate Variance for the month of June.

Group of answer choices

$105 000 Favourable

$50 000 Favourable

$100 000 Favourable

$50 000 Unfavourable