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

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Definitions:

Constructed

Built or formed from parts; often refers to buildings, roads, or other man-made structures.

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Visual representations produced on a surface, in photos, videos, drawings, or any other visualization media.

Lyme Disease

An infectious disease caused by the bacterium Borrelia burgdorferi, transmitted to humans through the bite of infected black-legged ticks, characterized by symptoms like rash, fever, and fatigue.

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A small arthropod animal that has six legs and, generally, one or two pairs of wings.