Loving Bonito Ltd manufactures custom-made purses. The following data pertains to Job L0011: Direct materials placed into production $4,000 Direct labour hours worked 50 hours Direct labour rate per hour $ 15 Machine hours worked 100 hours Factory overhead is applied using a plant-wide rate based on direct labour hours. Factory overhead was budgeted at $80,000 for the year and the direct labour hours were estimated to be 20,000. Job L0011 consists of 50 units. What the labour cost per unit for Job L0011? Question 4 options: 1) $4 2) $15 3) $0.80 4) $40
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
Loving Bonito Ltd manufactures custom-made purses. The following data pertains to Job L0011:
| Direct materials placed into production | $4,000 |
| Direct labour hours worked | 50 hours |
| Direct labour rate per hour | $ 15 |
| Machine hours worked | 100 hours |
Factory
to be 20,000. Job L0011 consists of 50 units.
What the labour cost per unit for Job L0011?
Question 4 options:
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