The Standard Cost Card for a Batch of 3,000 Bottles

question 25

Multiple Choice

The Standard Cost Card for a batch of 3,000 bottles of shampoo includes the following:
36 hours in Process 1 at £6.00 per hour
4 hours in Process 2 at £9.00 per hour
A batch of 3,000 bottles had the following usage:
40 hours in Process 1 at a total cost of £260
3) 5 hours in process 2 at a cost of £35.
What are the labour efficiency and rate variances for the Process 2?

• A) The Efficiency Variance is £3.50 Favourable and the Rate Variance is £4.50 Adverse
• B) The Efficiency Variance is £4.50 Favourable and the Rate Variance is £3.50 Adverse
• C) The Efficiency Variance is £4 Favourable and the Rate Variance is £1 Adverse
• D) The Efficiency Variance is £4 Adverse and the Rate Variance is £5 Favourable

---

Definitions:

Infinite Number

A quantity that has no end or limit, often used in mathematics to describe a value that grows without bounds.

Positively Skewed

Describes a distribution of data where the tail extends more towards the higher value side, indicating that the mean and median are greater than the mode.

Negative Scores

Values that fall below the designated origin or point of reference, often indicating less than average results or deficits.

Frequency Distributions

A way of summarizing data that shows the number of observations that fall within a range of values.