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

question 30

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 rate variance for March is

• A)£4,578 unfavourable.
• B)£1,470 unfavourable.
• C)£4,578 favourable.
• D)£1,470 favourable.

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Definitions:

Unconscionable

Describes actions or conditions that are excessively unfair or immoral to a degree that they go against the basic principles of justice or good conscience.

Procedural Unconscionability

A legal concept where a contract or clause is considered unjust due to unfair or oppressive terms or conditions that were imposed upon one party, often due to unequal bargaining power.

Undue Influence

Improper or unfair persuasion by one party over another, often leading to decisions that are not in the victim's best interest.

Substantive Unconscionability

A legal principle that allows courts to refuse to enforce contracts that are grossly unfair or one-sided in favor of the party with superior bargaining power.