Emma Ltd. makes national, provincial, novelty, and sports flags. It uses a standard costing system to control the costs of making flags. The standard cost in direct labour to make one of its flags is as follows:

Direct labour ? hours $17.40 per hour

Planned production for the year was 14,000 flags. During the year, Flagships Ltd.'s direct labourers worked 35,000 hours to make 13,500 flags. Total labour costs were $690,000, of which 85% is direct labour. Its direct labour efficiency variance was $21,750 unfavourable. What is Flagships Ltd.'s direct labour price variance?

a) Price variance: $22,500 F

b) Price variance: $81,000 F

c) Price variance: $22,500 U

d) Price variance: $81,000 U