Accounting Multiple Choice Question – 21 April 2021

The following information relates to labour costs. 

• standard pay rate per hour  —  £7.50
• actual pay rate per hour  —  £9.00
• actual hours worked  —  60,000 hours
• labour efficiency variance  —  £12,000 adverse

What is the standard number of labour hours for actual output?

Select ONE answer:

1. 48,667
2. 51,333
3. 58,400
4. 61,600

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 3

1. Not correct
2. Not correct
3. Correct ==> (60,000 – X) * £7.50 = £12,000 Adverse where X = 58,400
4. Not correct

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