The following labour standards have been established for a particular product:

Standard labour hours per unit of output

$1\mathrm{.}6$ hours

Standard labour rate

$$14\mathrm{.}30$ per hour

The following data pertain to operations concerning the product for the last month:

Actual hours worked

$3,800$ hours

Actual total labour cost

$$54,900$

Actual output

$2,300$ units

What was the labour rate variance for the month?

Question $7$Answer

a$.$

$$1,539$ favourable

b$.$

$$1,539$ unfavourable

c$.$

$$560$ unfavourable

d$.$

$$560$ favourable