Management Accounting Test Questions

Q.  Given standard cost specifications time 5 hours per unit and cost Rs 5 per labour. Actual performance in cost period is production hours 10,400 and idle time 400 hours. Payment done is average per hour Rs 5.20 for 10,800 hours. Determine labour rate variance and labour efficiency variance, respectively.

a. Rs 2,160 and Rs 2,000 both unfavorable
b. Rs 2,160 and Rs 2,000 both favorable
c. Rs 2,000 and Rs 2,160 both unfavorable
d. Rs 2,000 and Rs 2,160 both favorable


ANSWER: See Answer
 
No explanation is available for this question!