Day: April 20, 2021

The cost of sales for a business comprises direct materials and direct labour.

At the end of a trading period the following variances are calculated.

If the actual cost of sales was £12,220, what is the standard cost of sales?

Select ONE answer:

1. £12,020
2. £12,120
3. £12,320
4. £12,420

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 1

1. Correct ==> £12,220 – (£800 + £750) + (£700 + £650)
2. Not correct
3. Not correct
4. Not correct

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