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MNO produces a single product. The standard production requirement for each unit requires 0.50 direct labour hours at a standard rate of $11 per hour.

MNO produces a single product. The standard production requirement for each unit requires 0.50 direct labour hours at a standard rate of $11 per hour. During the last year, MNO assembly line workers worked a total of 5,000 hours at a cost of $50,000 to MNO. Also last year, MNO manufactured 3,000 units of product. What was the company's direct labour rate variance for the year?

a)nill

b) $5000 favourable

c) $5000 unfavourable

d) $10,000 unfavourable

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