QUESTION 10 The following information relates to labour costs for the past month: Budget Labour rate 10 per hour Production time 15,000 labour hours Time per unit 2 labour hours Output 5,000 units Actual Wages paid 176,000 Output 4,500 units Total time worked 12,000 labour hours What were the labour rate and efficiency variances? Rate A) 56,000 Favourable B) 56,000 Favourable 56,000 Adverse D) 56,000 Adverse Efficiency 25,000 Favourable 10,000 Adverse 30,000 Favourable 30,000 Adverse