Alex Company Recently Completed 10,600 Units of Its Single Product

Alex Company recently completed 10,600 units of its single product, consuming 32,000 labour hours that cost the firm $480,000. According to manufacturing specifications, each unit should have required 3 hours of labour time at $15.40 per hour. On the basis of this information, determine Alex's labour rate variance and labour efficiency variance. $\begin{array}{|l|c|l|}\hline & \text { Rate } & {\text { Efficiency }} \\\hline 1 & \$ 12,720 \mathrm{~F} & \$ 3,000 \mathrm{~F} \\\hline 2 & \$ 12.720 \mathrm{~F} & \$ 3,000 \mathrm{U} \\\hline 3 & \$ 12,800 \mathrm{~F} & \$ 3,080 \mathrm{~F} \\\hline 4 & \$ 12,800 \mathrm{~F} & \$ 3,080 \mathrm{U} \\\hline 5 & \$ 12.800 \mathrm{U} & \$ 3,080 \mathrm{U} \\\hline\end{array}$

A) 1
B) 2
C) 3
D) 4
E) 5