ACCA MA · Chapter 12 · Question 8 of 10
In a period, 2,100 units were produced, and 6,480 hours were worked. The standard labour rate is $15 per hour, and the labour efficiency variance was $2,700 adverse. What is the standard labour time per unit?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) 3.00 hours
Explanation
Excess hours = 2,700 / 15 = 180 hours adverse, so standard hours for actual output = 6,480 - 180 = 6,300. Standard time per unit = 6,300 / 2,100 = 3.00 hours. Adding the 180 hours instead of subtracting them gives 6,660 / 2,100 = 3.17 hours.
More Standard costing and cost variances MCQs
- Q10Each unit of a product uses 3 kg of material at $4 per kg and 2 direct labour hours at $12 per hour. Variable overheads are $3 per labour…
- Q1Which type of standard allows for normal levels of material waste, machine breakdowns and idle time?
- Q2A company bought 8,000 kg of material for $35,200, and 7,600 kg were used in production. The standard price is $4.50 per kg, and raw…
- Q3The standard material usage is 4 kg per unit, at a standard price of $4.50 per kg. 1,900 units were produced using 7,850 kg, which were…
- Q4Employees were paid $39,600 for 2,200 hours. Of these paid hours, 2,090 were worked and 110 were idle time. The standard labour rate is…