Using the data from the previous question (standard 3 hours per unit, standard rate ₦1,500 per hour, actual output 900 units, actual hours worked 2,850), what is the Labour Efficiency Variance?

Standard hours for actual output = 900 × 3 = 2,700 hours. Labour Efficiency Variance = (Standard Hours – Actual Hours) × Standard Rate = (2,700 – 2,850) × ₦1,500 = –150 × ₦1,500 = ₦225,000 Adverse. The variance is adverse because workers took 150 more hours than the standard allowed, indicating inefficiency. However, re-checking: (2,700 – 2,850) = –150 × ₦1,500 = ₦225,000 Adverse — answer is B.