Maria Runs a Bakery, Baking and Selling Cakes for Special

Multiple Choice

Maria runs a bakery, baking and selling cakes for special occasions. Each cake requires 2 hours of direct labour for baking and decorating. Direct labour is paid at the rate of £8 per hour. During May, Maria expected to bake 400 cakes. However, due to additional demand, she baked 500 cakes and her total labour cost for the month was £7,938 for 980 hours of direct labour. What was Maria's direct labour total variance for the month of May?

A) £62 Favourable
B) £98 Unfavourable
C) £160 Favourable
D) £1,600 Unfavourable