Julum Limited manufactures a single product and operates a standard costing system.     Budgeted Data (per unit) :       Labour 5 hours @ £15.00 Per Hour Budgeted production for August was expected to reach     10000 Units Actual production     11000 Units The actual costs incurred were as follows :       Actual Data :           Labour 60000 hours @ £14.50 Per Hour   a). What is Labour efficiency variance? Choose one from the following:   A. £30,000.00 Favourable   B. £75,000.00 Unfavourable   C. £45,000.00 Favourable   D. £45,000.00 Unfavourable

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Julum Limited manufactures a single product and operates a standard costing system.

 

 

Budgeted Data (per unit) :

     

Labour

5

hours

@

£15.00

Per Hour

Budgeted production for August was expected to reach  

 

10000

Units

Actual production

   

11000

Units

The actual costs incurred were as follows :

     

Actual Data :

         

Labour

60000

hours

@

£14.50

Per Hour

 

a). What is Labour efficiency variance?

Choose one from the following:

  A.

£30,000.00

Favourable

  B.

£75,000.00

Unfavourable

  C.

£45,000.00

Favourable

  D.

£45,000.00

Unfavourable

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