Exam 10: Standard Costing and Variance Analysis

The standard cost of labour for Product Y is £15 per unit of production. The results for February show an unfavourable direct labour rate variance of £500 and a favourable direct labour efficiency variance of £700. Actual production for February was 2,500 units of Product Y. What was the actual direct labour cost of Product Y for February?

XYZ Limited produces Product W. Product W has a standard selling price of £240 and a standard variable cost of £160. During the month of June, sales of Product W produced a favourable sales volume variance of £7,200. Budgeted contribution from sales of Product W for June was £48,000. How many units of Product W were actually sold during June?

Which one of the following would result in an unfavourable sales volume variance?

Product G uses materials with a standard cost of £20 per unit of production. The results for May show an unfavourable direct material price variance of £2,400 and a favourable direct material usage variance of £1,800. Actual production during May was 3,000 units of Product

Variances calculate the differences between actual and standard revenues and costs.

Variances calculate the difference between actual and budgeted revenues and costs.

TJC Limited allocates a standard £5.00 fixed overhead cost to Product J on the basis that 5,000 units of Product J are produced each month. 5,500 units of Product J were produced in July resulting in an unfavourable fixed overhead expenditure variance of £1,000. What was the actual fixed overhead expenditure during July?