Use the Information Below to Answer the Following Questions -Refer to the Table Above

Multiple Choice

Use the information below to answer the following questions. $$\begin{array} { l c c } & \text { Budget for April } & \text { Actual for April } \\\text { Output } & 40,000 \text { units } & 40,000 \text { units } \\\text { Sales } & \$ 400,000 & \$ 400,000 \\\text { Raw materials } & \$ 80,000 & \$ 88,000 \\\text { Labour } & \$ 200,000 & \$ 180,000 \\\text { Overheads } & 225,000 & 305,000\end{array}$$
-Refer to the table above. The labour variance can best be described as:

A) an adverse variance resulting from excessive use of labour and/or a rise in the hourly rate of pay.
B) a favourable variance resulting from the efficient use of labour and/or a reduction in the hourly pay rate.
C) being caused by an increase in the pay rate for labour.
D) being caused by more efficient labour.