Variance

Question Brake Ltd. manufactured and distributes brake discs to the automotive sector. The company operates an integrated standard cost system in which. – Purchases of materials are recorded at standard cost – Direct Material costs and direct labour costs are variable – Production overheads are fixed and absorbed using direct labour hours. Actual and budgeted data for May are shown below – Budgeted direct materials per unit 0 2kg at $5/kg – Direct Labour – 0.5/unit – Budgeted production for the month was 10,000 units – 22,500 kgs of materials were purchased – The total standard cost of the materials was $115,000 -6000 direct labour hours were worked at a cost of $6/hour. -Budgeted fixed production o/h in the period were $240000. -Actual fixed production o/h in the period were $260000. Variances calculated for may are as follows: -material price variance $11250(A) -labour efficiency variance $1750(A) q-5: CALCULATE THE STANDARD RATE PER LABOUR HOUR. (THE ANSWER SAYS $7, I can't figure out how it comes down to $7. please help!)