Exam 12: Activity Analysis: Costing and Management

Cox Engineering performs cement core tests in its laboratory. The following standards have been set for each core test performed: standard Hours or Quantity standard price or Rate Direct materials 3.0 pounds £0.75 per pound Direct labour 0.4 hours £12.00 per hour Variable manufacturing overhead 0.4 hours £9.00 per hour During March, the laboratory performed 2,000 core tests. On March 1 no direct materials (sand) were on hand. Variable manufacturing overhead is assigned to core tests on the basis of direct labour hours. The following events occurred during March: 8,600 pounds of sand were purchased at a cost of £7,310. 7,200 pounds of sand were used for core tests. 840 actual direct labour hours were worked at a cost of £8,610. Actual variable manufacturing overhead incurred was £3,200. - The labour efficiency variance for March is

The following labour standards have been established for a particular product: Standard labour hours per unit of output 8.10 hours Standard labour rate £14.40 per hour The following data pertain to operations concerning the product for the last month:Actual hours worked $\quad 8,700$ hours Actual total labour cost $£ 129,195$ Actual output $\quad$ $\quad$ $\quad$ 1,000 units - What is the labour efficiency variance for the month

The entry to record unfavorable labour efficiency variance and a favourable labour rate variance is