Figure 17-5
Ebola Company Has Developed the Following Standards for One

question 20

Multiple Choice

Figure 17-5
Ebola Company has developed the following standards for one of its products: $\begin{array}{ll}\text { Direct materials } & 20 \text { pounds } \times £ 4 \text { per pound } \\\text { Direct labour } & 5 \text { hours } \times £ 18 \text { per hour } \\\text { Variable overhead } & 5 \text { hours } \times £ 4 \text { per hour }\end{array}$ The following activities occurred during the month of October: $\begin{array}{ll}\text { Materials purchased } & 230,000 \text { pounds at } £ 4.20 \text { per pound } \\\text { Materials used } & 220,000 \text { pounds } \\\text { Units produced } & 10,000 \text { units } \\\text { Direct labour } & 51,000 \text { hours at } £ 17.70 \text { per hour } \\\text { Actual variable overhead } & £ 240,000\end{array}$ The company records materials price variances at the time of purchase.
-Refer to Figure 17-5. Ebola's labour efficiency variance would be

• A)£18,000 favourable.
• B)£18,000 unfavourable.
• C)£17,700 unfavourable.
• D)£17,700 favourable.

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Definitions:

English Exam

A test assessing one's knowledge, proficiency, and understanding of the English language.

Standard Deviation

An analytic gauge for the degree of spread or divergence of values within a dataset.

Normal Model

A statistical representation of a normal distribution, where data is symmetrically distributed around the mean.

Mean Speed

The average rate at which an object covers distance, calculated by dividing the total distance by the total time taken.