The Carl Care Company established the following direct labour cost standards for one unit of product Z: Standard hours: 1.5 hours Standard rate: $20 per hour Standard cost: $30 (1.5 hours @ $20 per hour)During the month of July, 20,000 direct labour hours were worked, and 12,500 units ofproduct Z were manufactured. The total wages related to direct labour in July were$405,000. The direct labour rate variance for July was:

The Carl Care Company established the following direct labour cost sta

1.	The Carl Care Company established the following direct labour cost standards for one unit of product Z: Standard hours: 1.5 hours Standard rate: $20 per hour Standard cost: $30 (1.5 hours @ $20 per hour)During the month of July, 20,000 direct labour hours were worked, and 12,500 units ofproduct Z were manufactured. The total wages related to direct labour in July were$405,000. The direct labour rate variance for July was:
A.	$5,000 unfavourable
B.	$5,000 favourable
C.	$30,000 favourable
D.	$30,000 unfavourable
Answer» B. $5,000 favourable