Figure 17-1
Max Company Has Developed the Following Standards for One

question 44

Multiple Choice

Figure 17-1
Max Company has developed the following standards for one of its products: $\begin{array}{ll}\text { Direct materials } & 15 \text { pounds } \times £ 16 \text { per pound } \\\text { Direct labour } & 4 \text { hours } \times £ 24 \text { per hour } \\\text { Variable overhead } & 4 \text { hours } \times £ 14 \text { per hour }\end{array}$ The following activities occurred during the month of October: $\begin{array}{lc}\text { Materials purchased } & 10,000 \text { pounds costing } £ 170,000 \\\text { Materials used } & 7,200 \text { pounds } \\\text { Units produced } & 500 \text { units } \\\text { Direct labour } & 2,300 \text { hours at } £ 23.60 \text { per hour } \\\text { Actual variable overhead } & £ 30,000\end{array}$ The company records materials price variances at the time of purchase.
-Refer to Figure 17-1. Max's labour rate variance would be

• A)£920 unfavourable.
• B)£920 favourable.
• C)£800 unfavourable.
• D)£800 favourable.

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Definitions:

Relatedness

A sense of connection or belonging to others, often considered a fundamental human need.

Positive Psychology

An area of psychology focused on what can make our lives better and what might make us happier.

Competence And Autonomy

The ability of an individual to effectively perform tasks and make choices without external influence.

Extrinsic Motivation

Motivation driven by external rewards such as money, fame, grades, and praise.