Production Ltd. produces specific widgets for machines. Managers of Production Ltd. have budgeted that to produce one widget it is necessary to use 2.5 labour hours. One labour hour is budgeted to cost 3. The actual labour hours worked to produce widgets are 4,200 hours with a labour cost of 10,500 to produce an actual amount of 10,250 widgets. Use one decimals in your calculations. Considering this information, which of the following statements is true? a. The labour rate variance is favourable. b. The labour rate variance is unfavourable c. The standard labour rate is 2.5 and the actual labour rate is 3. d. None of the answers is true