John Ltd. manufactures a product with a standard direct labour input of six hours at a cost of 15.00 per hour. Last month, 1,000 units were produced using 6,500 labour hours costing 93,600. 11.

The direct labour efficiency variance was: (a) 500 unfavourable/adverse (b) 7,500 unfavourable/adverse (c) 22,500 favourable (d) 7,200 unfavourable/adverse 12.

The direct labour rate variance was: (a) 300 favourable (b) 34,600 favourable (c) 3,600 favourable (d) 3,900 favourable