The Standard Cost Card for a Batch of 3,000 Bottles

Multiple Choice

The Standard Cost Card for a batch of 3,000 bottles of shampoo includes the following:
36 hours in Process 1 at £6.00 per hour
4 hours in Process 2 at £9.00 per hour
A batch of 3,000 bottles had the following usage:
40 hours in Process 1 at a total cost of £260
3) 5 hours in process 2 at a cost of £35.
What are the labour efficiency and rate variances for the Process 2?

A) The Efficiency Variance is £3.50 Favourable and the Rate Variance is £4.50 Adverse
B) The Efficiency Variance is £4.50 Favourable and the Rate Variance is £3.50 Adverse
C) The Efficiency Variance is £4 Favourable and the Rate Variance is £1 Adverse
D) The Efficiency Variance is £4 Adverse and the Rate Variance is £5 Favourable