Accounting Multiple Choice Question – 26 February 2021

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

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The standard time for a job is set at 50 hours. The standard direct labour rate is £8.00 per hour.

The job was completed in 65 hours at a direct labour cost of £455.

What is the direct labour rate variance?

Select ONE answer:

  1. £55 adverse
  2. £55 favourable
  3. £65 adverse
  4. £65 favourable 

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 4

  1. Not correct
  2. Not correct
  3. Not correct
  4. Correct – £455 / 65 = £7 ==> £8 – £7 * 65 hours = £65 FAV

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