Lawson Law and Associates is a law firm that bills all work out at $600 per hour, regardless of who works on a particular case or the nature of the case. The firms accountant recently compared budgeted hours to actual hours billed for the past year, with the following results:

Billable hours Cost per hour

Staff member Budget Actual Budget Actual

Partner 7,000 6,550 $400 $420

Associate 9,000 9,750 $ 95 $ 90

Support staff 2,000 13,250 $ 30 $ 25

What is the total labour rate variance for Lawson Law for the year?

a) $16,000 U

b) $16,000 F

c) $35,000 U

d) $35,000 F