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DNK Company produces wooden boxes. The company's standards per box requires six boards, each costing $10 per board, and half hour of direct labour. The

DNK Company produces wooden boxes. The company's standards per box requires six boards, each costing $10 per board, and half hour of direct labour. The standard labour rate is $15 per hour. In August, DNK purchased 12,000 boards for a total cost of $123,000. It used 11,500 boards to manufacture 1,900 boxes. Total labour hours were 1,000 hours, and total labour costs were $16,250. What was the labour quantity variance for August?

The answer is 750 Unfavorable. How did they arrive to the answer?

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