The Following Labour Standards Have Been Established for a Particular

Multiple Choice

The following labour standards have been established for a particular product:
$\begin{array}{|l|r|}\hline \text { Standard labour hours per unit of output } & 1.7 \text { hours } \\\hline \text { Standard labour rate } & \$ 14.05 \text { per hour } \\\hline\end{array}$
The following data pertain to operations concerning the product for the last month:
$\begin{array}{|l|r|}\hline \text { Actual hours worked } & 3,700 \text { hours } \\\hline \text { Actual total labour cost } & \$ 50,690 \\\hline \text { Actual output } & 2,300 \text { units } \\\hline\end{array}$
What was the labour rate variance for the month?

A) $1,295 favourable.
B) $1,295 unfavourable.
C) $2,950 favourable.
D) $2950 unfavourable.