The Following Labour Standards Have Been Established for a Particular

question 13

Multiple Choice

The following labour standards have been established for a particular product: $\begin{array}{ll}\text { Standard labour hours per unit of output }&9.0 \text { hours }\\\text { Standard labour rate }&£ 15.10 \text { per hour }\end{array}$

The following data pertain to operations concerning the product for the last month: $\begin{array}{ll}\text { Actual hours worked } & 8,100 \text { hours } \\\text { Actual total labour cost } & £ 119,880 \\\text { Actual output } & 800 \text { units }\end{array}$
What is the labour rate variance for the month

• A)£11,160 F
• B)£13,320 U
• C)£11,160 U
• D)£2,430 F

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Definitions:

Typing

The act of inputting text into a device, such as a computer or a smartphone, by pressing keys or using a virtual keyboard.

Gains From Trade

The net benefits that individuals, companies, or countries obtain by voluntarily exchanging goods or services with one another.

Absolute Advantage

The ability of an entity to produce a good or service more efficiently than its competitors, using fewer resources.

Specialize

To concentrate on a particular area of study, work, or production, often to gain higher proficiency or efficiency.