Day: April 23, 2021

Budgeted and actual labour costs for making a product are given.

What is the labour efficiency  variance?

Select ONE answer:

1. £1,620 adverse
2. £1,620 favourable
3. £1,650 adverse
4. £1,650 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 3

1. Correct ==> £19,530 / 1,240 = £15.75 ==> £0.25 * 1,240 = £310 ADV
2. Not correct
3. Not correct
4. Not correct

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