Twister Pty Ltd Has Set Direct Labour Standards of 3

question 56

Multiple Choice

Twister Pty Ltd has set direct labour standards of 3 hours per unit and $5 per hour. During the month 2900 hours at a total cost of $17 400 were used to produce 1000 units. Determine the direct labour price variance.

• A) $2400 (U)
• B) $2400 (F)
• C) $2900 (U)
• D) $2900 (F)

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Definitions:

Bona Fide Purchaser

A Bona Fide Purchaser is someone who buys property in good faith, without notice of any other party's claim to the property or any defects in the title.

Right to Redeem

The legal right allowing a debtor to reclaim ownership of property by paying off a loan or other obligation, usually within a specific period of time after a foreclosure sale.

Secured Party

An individual or organization that holds an interest in a security agreement on property offered as collateral, ensuring payment or performance of some obligation.

Disposition

In legal and financial contexts, it refers to the act of disposing of an asset through sale, assignment, lease, or other transfer method.