The organization budgeted 400,000 for 40,000 hours of direct labour to complete 16,000 units offinished product. The firm used 42,000 direct-labour hours and completed 17,000 units of finished product. What is the direct-labour rate variance?

• A. 20,000 unfavourable
• B. 25,000 favourable
• C. 25,000 unfavourable
• D. Cannot be determined from the information provided