Figure 17-4 Shannon Ltd.'s Standard Cost Card Contained the Following Information

Multiple Choice

Figure 17-4
Shannon Ltd.'s standard cost card contained the following information:
Direct labour: 1.25 hours * £8.00 per hour = £10.00
Shannon planned to make 12,000 units. Shannon actually made 10,000 units using 13,000 hours.
-Refer to Figure 17-4. If Shannon's actual labour cost was £136,500, Shannon's labour rate variance was

A) £32,500 unfavourable.
B) £32,500 favourable.
C) £6,500 unfavourable.
D) £6,500 favourable.