The standard cost of labour input for Product B is:

2 hours of skilled labour paid at 12.50 per hour

Last month 1,000 units of Product B were produced, and the skilled labour cost was 27,000 for 2,500 hours of work.

Calculate the total labour variance:

	a.	14,500 Favourable
	b.	None of the answers given are correct
	c.	2,000 Adverse
	d.	1,700 Adverse