Pendennis plc had the following budget and actual figures for Product ZN6 during April: Budget Actual Output Sales revenue Raw materials Labour Fixed overheads Profit OA. £2,500 favourable B. £2,500 adverse C. £3,000 favourable 2,200 units OD. £3,000 adverse £ 176,000 (77,000) 22,000 metres (66,000) 11,000 hours (24,200) 8,800 2,500 units What is the direct labour efficiency variance for Product ZN6 for the month of April? £ 205,000 (98,800) 28,000 metres (65,000) 13,000 hours (21,400) 19,800

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Pendennis plc had the following budget and actual figures for Product ZN6 during April:
Budget
Actual
Output
Sales revenue
Raw materials
Labour
Fixed overheads
Profit
2,200 units
A. £2,500 favourable
B. £2,500 adverse
C. £3,000 favourable
D. £3,000 adverse
£
176,000
(77,000) 22,000 metres
(66,000) 11,000 hours
(24,200)
8,800
2,500 units
£
205,000
(98,800) 28,000 metres
(65,000) 13,000 hours
(21,400)
19,800
What is the direct labour efficiency variance for Product ZN6 for the month of April?
Transcribed Image Text:Pendennis plc had the following budget and actual figures for Product ZN6 during April: Budget Actual Output Sales revenue Raw materials Labour Fixed overheads Profit 2,200 units A. £2,500 favourable B. £2,500 adverse C. £3,000 favourable D. £3,000 adverse £ 176,000 (77,000) 22,000 metres (66,000) 11,000 hours (24,200) 8,800 2,500 units £ 205,000 (98,800) 28,000 metres (65,000) 13,000 hours (21,400) 19,800 What is the direct labour efficiency variance for Product ZN6 for the month of April?
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