The standard direct labour cost of product Zeta is as follows: Three hours of skilled labour at £4 per hour is equal to £12 per unit of product Zeta. During the current period, 800 units of the product were made, and the skilled direct labour cost was £10,200 for 2,000 hours worked. Based on the above information, what was the direct labour total variance? a) £600 Adverse b) £800 Favourable c) £800 Adverse d) £600 Favourable
The standard direct labour cost of product Zeta is as follows: Three hours of skilled labour at £4 per hour is equal to £12 per unit of product Zeta. During the current period, 800 units of the product were made, and the skilled direct labour cost was £10,200 for 2,000 hours worked. Based on the above information, what was the direct labour total variance? a) £600 Adverse b) £800 Favourable c) £800 Adverse d) £600 Favourable
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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9. The standard direct labour cost of product Zeta is as follows: Three hours of skilled
labour at £4 per hour is equal to £12 per unit of product Zeta. During the current
period, 800 units of the product were made, and the skilled direct labour cost was
£10,200 for 2,000 hours worked.
Based on the above information, what was the direct labour total variance?
a) £600 Adverse
b) £800 Favourable
c) £800 Adverse
d) £600 Favourable
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