The Clark Company makes a single product and uses standard costing. Some data concerning this product for the month of May follow:

Labour rate variance	$7,000 favourable
Labour efficiency variance	$12,000 favourable
Variable overhead efficiency variance	$4,000 favourable
Number of units produced	10,000
Standard labour rate per direct labour hour	$12
Standard variable overhead rate per direct labour hour	$4
Actual labour hours used	14,000
Actual variable manufacturing overhead costs	$58,290

What are the standard hours allowed to make one unit of finished product?

Multiple Choice

1.0 hours.

1.2 hours.

1.5 hours.

2.0 hours.