A product's standard cost card includes the following: 3 hours of labour at £10 per hour = £30 In March, the company used 27,000 hours at a cost of £285,000 in order to produce 8,500 units. What was the labour rate variance? (a) £15,000 A (b) £30,000 A (c) £45,000 A (d) £15,000 F

A product's standard cost card includes the following: 3 hours of labour at £10 per hour = £30 In March, the company used 27,000 hours at a cost of £285,000 in order to produce 8,500 units. What was the labour rate variance? (a) £15,000 A (b) £30,000 A (c) £45,000 A (d) £15,000 F

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

3.
A product's standard cost card includes the following:
3 hours of labour at £10 per hour = £30
In March, the company used 27,000 hours at a cost of £285,000 in
order to produce 8,500 units.
What was the labour rate variance?
(a) £15,000 A
(b) £30,000 A
£45,000 A
(d) £15,000 F

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