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!)