Figure 17-3
Tuvok Ltd -Refer to Figure 17-3

question 2

Multiple Choice

Figure 17-3
Tuvok Ltd. has developed the following standards for one of its products: $\begin{array}{ll}\text { Standard cost of materials } & £ 0.50 \text { per pound } \\\text { Materials purchased and used } & 20,000 \text { pounds } \\\text { Total paid to suppliers } & £ 11,000 \\\text { Standard quantity allowed } & 18,000 \text { pounds }\end{array}$
-Refer to Figure 17-3. Tuvok's materials usage variance is

• A)£1,000 unfavourable.
• B)£1,100 unfavourable.
• C)£2,000 unfavourable.
• D)cannot be determined from the information given.

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Definitions:

Net Operating Income

A measure of a company's profitability from its core business operations, excluding taxes and interest expenses.

Direct Labor Cost

The total cost of workforce directly involved in the production of goods or services, excluding indirect labor such as administration.

Variable Costing

A costing technique that only assigns variable production costs to inventory, helping managers understand the impact of production levels on total costs.

Net Operating Income

The income produced through a firm's regular commercial activities, not including taxes and interest.