GH Manufactures a Product Using Skilled Labour and High Quality

question 19

Multiple Choice

GH manufactures a product using skilled labour and high quality materials. The company operates a standard costing system and a just-in-time (JIT) purchasing and production system. The standard selling price and variable costs for one unit of the product are as follows: 11ec37eb_8baa_2b57_97b9_e7e297f9ad54__00 11ec37eb_8baa_2b58_97b9_27a8ce40dc17__00 Calculate the following variances for October, taking account of the more detailed information regarding the labour mix: (i) The total labour efficiency variance (ii) The total labour mix variance (iii) The total labour yield variance Select the correct statements.

• A) Labour yield variance: $ 144 000 A
• B) Labour mix variance: $ 66 000 F
• C) Labour efficiency variance: $ 78 000 A
• D) Labour efficiency variance: $ 78 000 F
• E) Labour efficiency variance: $ 88 000 F
• F) Labour mix variance: $ 75 000 F
• G) Labour efficiency variance: $ 98 000 A
• H) Labour mix variance: $ 63 000 A

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Definitions:

BAT Model

Behavioral Analysis of Teams Model; a framework for analyzing team performance and dynamics, focusing on behavior as the primary factor.

Trading Cost

Expenses incurred when buying or selling securities, including commissions, spreads, and slippage.

Weekly Cash Flows

The inflow and outflow of cash within a business measured on a weekly basis, crucial for understanding liquidity and operational efficiency.

Miller-Orr Model

A financial model used to manage cash balances, determining when and how much to transfer between interest-bearing investments and cash.