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Driver Company Ltd has set the following standards for the production of one unit of product. Normal production each month is 500 units Standard Costs

Driver Company Ltd has set the following standards for the production of one unit of product. Normal production each month is 500 units

Standard Costs per unit:

Direct materials: 8kg at $6.50 per kg

Direct labour: 4 hours at $7.00 per hour

During June, actual production amounted to 420 units. All direct material was purchased and used this month. Actual costs amounted to:

Direct material: 3500kgs at a total cost of $21875

Direct labour: 1720 hours at a total cost of $12212

Required:

Determine the standard direct labour rate variance for June production

a.

$200 U

b.

$168 U

c.

$172 U

d.$280 U

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