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The Albright Company uses standard costing and has established the following standards for its single...

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Accounting

The Albright Company uses standard costing and has established the following standards for its single product:

Direct Materials 2 litres at $3 per litre
Direct Labour 0.5 hours at $8 per hour
Variable Manufacturing Overhead 0.5 hours at $2 per hour

During November, the company made 4,000 units and incurred the following costs:

Direct Materials Purchased 8,100 litres at $3.10 per litre
Direct Materials Used 7,600 litres
Direct Labour Used 2,200 hours at $8.25 per hour
Actual Variable Manufacturing Overhead $4,175

The company applies variable manufacturing overhead to products on the basis of direct labour hours. What was the labour rate variance for November?

Question options:

$550 unfavourable.

$1,050 unfavourable.

$2,150 favourable.

$2,150 unfavourable.

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