Day: November 1, 2022

During the year a company produces 10,000 units.

The cost data relating to the production is shown below.

• direct materials – actual cost £22,000 & total variance (£2,000) A
• direct labour – actual cost £32,000 & total variance £4,000 F

What was the standard prime cost per unit?

Select ONE answer:

1. £5.20
2. £5.40
3. £5.60
4. £6.00

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 – £22k – £2k + £32k + £4K / 10,000
4. Not correct

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