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

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

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

Expert Solution
steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Risk Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education