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The Following Labour Standards Have Been Established for a Particular

Question 113

Multiple Choice

The following labour standards have been established for a particular product:
 Standard labour hours per unit of output 1.7 hours  Standard labour rate $14.05 per hour \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:
 Actual hours worked 3,700 hours  Actual total labour cost $50,690 Actual output 2,300 units \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.

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