Cox Engineering Performs Cement Core Tests in Its Laboratory During March, the Laboratory Performed 2,000 Core Tests

question 61

Multiple Choice

Cox Engineering performs cement core tests in its laboratory. The following standards have been set for each core test performed: $\begin{array}{lcc}&\text { standard Hours or Quantity} &\text {standard price or Rate }\\\text { Direct materials } & 3.0 \text { pounds } & £ 0.75 \text { per pound } \\\text { Direct labour } & 0.4 \text { hours } & £ 12.00 \text { per hour } \\\text { Variable manufacturing overhead } &0.4 \text { hours } & £ 9.00 \text { per hour }\end{array}$

During March, the laboratory performed 2,000 core tests. On March 1 no direct materials (sand) were on hand. Variable manufacturing overhead is assigned to core tests on the basis of direct labour hours. The following events occurred during March:
8,600 pounds of sand were purchased at a cost of £7,310.
7,200 pounds of sand were used for core tests.
840 actual direct labour hours were worked at a cost of £8,610.
Actual variable manufacturing overhead incurred was £3,200.
-
The labour efficiency variance for March is

• A)£480 favourable.
• B)£480 unfavourable.
• C)£192 favourable.
• D)£192 unfavourable.

---

Definitions:

Anti-Semitism

Prejudice, discrimination, or hostility specifically directed against Jews as a religious, ethnic, or racial group.

Secondary Groups

Larger and more impersonal than primary groups. Compared with primary groups, social interaction in secondary groups creates weaker emotional ties, extends over a shorter period, involves a narrow range of activities, and results in most group members having at most a passing acquaintance with one another.

Impersonal

Lacking warmth or personal interest; characterized by an objective, neutral attitude that does not consider personal feelings or relationships.

Primary Groups

Are groups whose members agree upon norms, roles, and statuses without putting them in writing. Social interaction leads to strong emotional ties, extends over a long period, involves a wide range of activities, and results in group members knowing one another well.