Serenity Equestrian Corporation Produces High-Quality Leather Saddles -Refer to the Figure

Multiple Choice

Serenity Equestrian Corporation produces high-quality leather saddles. The company has a standard cost system and has set the following standards for materials and labour:
During the year, Serenity Equestrian Corporation produced 150 saddles. Actual leather purchased was 3,100 strips at $12 per strip. There were no beginning or ending inventories of leather. Actual direct labour was 2,500 hours at $16 per hour.
$\begin{array}{lll}\text {Leather (20 strips@ \( \$ 15 \) per strip) }&\$300\\\text {Direct labour ( 15 hours \( @ \$ 15 \) per hour) }&225\\\text {Total prime cost }&\$252\\\end{array}$

-Refer to the Figure.What are the labour rate variance and the labour efficiency variance,respectively?

A) $2,250 U and $4,000 U
B) $2,250 F and $4,000 F
C) $2,500 U and $3,750 U
D) $2,500 F and $3,750 F