The Geurtz Company Uses Standard Costing

question 47

Multiple Choice

The Geurtz Company uses standard costing. The company makes and sells a single product called a Roff. The following data are for the month of August:
Actual cost of direct material purchased and used: £65,560
Material price variance: £5,960 unfavourable
Total materials variance: £22,360 unfavourable
Standard cost per pound of material: £4
Standard cost per direct labour hour: £5
Actual direct labour hours: 6,500 hours
Labour efficiency variance: £3,500 favourable
Standard number of direct labour hours per unit of Roff: 2 hours
Total labour variance: £400 unfavourable
-
The actual direct labour rate per hour was

• A)£ 5.60.
• B)£ 5.00.
• C)£10.00.
• D)£ 4.40.

---

Definitions:

Initiative Versus Guilt

A stage of Erik Erikson's theory of psychological development where children aged roughly 3-5 years balance eagerness to attempt new tasks with the risk of feeling guilty for unintended consequences.

Cohesive Identity

The sense of being a unique person with a unified sense of self across different contexts and over time.

Identity Crisis

A period of uncertainty, confusion, or questioning regarding one's sense of self and personal identity, often occurring during adolescence or significant life transitions.

Optimism

A mental attitude characterized by hope and confidence in positive outcomes or the future.