Reference: 11-10
the Following Labour Standards Have Been Established for a Particular

question 32

Multiple Choice

Reference: 11-10
The following labour standards have been established for a particular product: $$\begin{array}{l}\begin{array} { | l | l | } \hline \text { Standard labour hours per unit of output } & 7.5 \text { hours } \\\hline \text { Standard labour rate } & \$ 15.25 \text { per hour } \\\hline\end{array}\\\text { The following data pertain to operations concerning the product for the last month: }\\\begin{array} { | l | l | } \hline \text { Actual hours worked } & 9,600 \text { hours } \\\hline \text { Actual total labour cost } & \$ 144,480 \\\hline \text { Actual units of output } & 1,200 \\\hline\end{array}\end{array}$$
-What is the labour efficiency variance for the month?

• A)$7,230 F.
• B)$7,230 U.
• C)$9,150 F.
• D)$9,150 U.

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Definitions:

Foreign Subsidiaries

Companies that are owned or controlled by another corporation (the parent company) and are located in a country different from where the parent company operates.

Goodwill Amortization

The gradual write-off of the premium paid over the fair market value in a business acquisition, reflecting the diminishing value of the goodwill asset over time.

Accounting Purposes

The rationale or objective behind financial record-keeping and reporting activities.

Tax Purposes

Refers to considerations or actions taken to comply with tax laws and regulations, often aiming to optimize tax efficiency.