During October, 16,000 Direct Labour Hours Were Worked at a Standard

question 67

Multiple Choice

During October, 16,000 direct labour hours were worked at a standard cost of £6 per hour. If the labour rate variance for October was £4,000 unfavourable, the actual cost per labour hour must be

• A)£6.25.
• B)£6.00.
• C)£5.75.
• D)none of the above.

---

Definitions:

Identical House

A conceptual term often used in real estate to describe homes that are exactly the same in design, size, and features for comparative purposes.

Loss Aversion

A psychological phenomenon where individuals prefer avoiding losses to acquiring equivalent gains, indicating a greater sensitivity to losses than to gains.

Savings Increase

A rise in the amount of money set aside for future use, typically in a deposit account or investment vehicle.

Zero Percent Interest

Zero Percent Interest describes a financing or credit offer where no interest is charged on the principal amount for a specific period, typically used as a promotional strategy.