The Following Labour Standards Have Been Established for a Particular

question 16

Multiple Choice

The following labour standards have been established for a particular product: $\begin{array}{ll}\text { Standard labour hours per unit of output }&8.10 \text { hours }\\\text { Standard labour rate }&£ 14.40 \text { per hour }\end{array}$

The following data pertain to operations concerning the product for the last month:Actual hours worked $\quad 8,700$ hours
Actual total labour cost $£ 129,195$
Actual output $\quad$ $\quad$ $\quad$ 1,000 units
- What is the labour rate variance for the month?

• A)£450 F
• B)£3,915 F
• C)£3,915 U
• D)£450 U

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Definitions:

Performance Measure

An indicator used to assess, compare, and track performance or efficiency, often applied to individuals, organizations, processes, or products.

Appraisal Cost

The cost of activities specifically designed to detect defective products or services before they reach the customer.

Quality Cost Report

A document summarizing the costs of quality activities, including prevention, appraisal, and failure costs.

In-Process Goods

Items that are currently in the production process but not yet completed.