The Following Labour Standards Have Been Established for a Particular

question 6

Multiple Choice

The following labour standards have been established for a particular product: $\begin{array}{lccc}\text {Standard labour hours per unit of output }&\text {1.7 metres}\\\text {Standard labour rate}&\text {\$ 14.05 per metre}\\\end{array}$
The following data pertain to operations concerning the product for the last month: $\begin{array} { l r } \text { Actual hours worked } & 3,700 \text { hours } \\\text { Actual total labour cost } & \$ 50,690 \\\text { Actual output } & 2,300 \text { units }\end{array}$ What was the labour rate variance for the month?

• A) $1,295 favourable.
• B) $1,295 unfavourable.
• C) $2,950 favourable.
• D) $2950 unfavourable.

---

Definitions:

Investments

Investments represent the allocation of resources (such as time, money, or effort) with the expectation of generating an income or profit.

Owners

Individuals or entities that hold the ownership interest in a company, entitling them to the residual profits and assets after liabilities are settled.

Corporation's Charter

A legal document that establishes a corporation, outlining its structure, operations, and objectives, issued by a governmental or other authorized entity.

Articles of Incorporation

Official papers submitted to a government agency for the purpose of officially registering the formation of a corporation.