Accounting for AQA: Part 2: Chapter 13

Question 1 Introduction

The labour rate variance measures the labour cost difference due to the rate paid to employees.

Question 1

A business has a standard cost of £600 for making 1,000 units of output. The actual cost is £580. Therefore, the total cost variance is £20 adverse.

True

False

Question 2

The materials variance is analysed into the material price variance and the material efficiency variance.

True

False

Question 3

The standard price of materials is £2 per kilo and the standard usage is 1,000 kilos. The actual cost of the materials is £2.50 per kilo and the actual usage is 1,200 kilos. Therefore the material price variance is £600 adverse.

True

False

Question 4

The labour efficiency variance can be expressed as: actual rate x (standard hours - actual hours).

True

False

Question 5

The labour rate variance measures the labour cost difference due to the rate paid to employees.

True

False

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Accounting for AQA: Part 2: Chapter 13

Page 1 of 2 - There are 10 questions in total.

Question 1 Introduction

Question 1

A business has a standard cost of £600 for making 1,000 units of output. The actual cost is £580. Therefore, the total cost variance is £20 adverse.

Question 2

The materials variance is analysed into the material price variance and the material efficiency variance.

Question 3

The standard price of materials is £2 per kilo and the standard usage is 1,000 kilos. The actual cost of the materials is £2.50 per kilo and the actual usage is 1,200 kilos. Therefore the material price variance is £600 adverse.

Question 4

The labour efficiency variance can be expressed as: actual rate x (standard hours - actual hours).

Question 5

The labour rate variance measures the labour cost difference due to the rate paid to employees.

AAT Q2022 Books

Accounting for AQA: Part 2: Chapter 13

Page 1 of 2 - There are 10 questions in total.

Question 1 Introduction

Question 1

A business has a standard cost of £600 for making 1,000 units of output. The actual cost is £580. Therefore, the total cost variance is £20 adverse.

Question 2

The materials variance is analysed into the material price variance and the material efficiency variance.

Question 3

The standard price of materials is £2 per kilo and the standard usage is 1,000 kilos. The actual cost of the materials is £2.50 per kilo and the actual usage is 1,200 kilos. Therefore the material price variance is £600 adverse.

Question 4

The labour efficiency variance can be expressed as: actual rate x (standard hours - actual hours).

Question 5

The labour rate variance measures the labour cost difference due to the rate paid to employees.