QUESTION: 25 Exam Topic: 1, Exam Pool A

The standard labour cost for 1 component is $15.00 (5 hours at $3 per hour). Last month, 6,000 hours were worked at a cost of $17,000 to produce 1,100 components. The labour efficiency variance was:

$1,500 Adverse
$1,000 Adverse
$1,000 Favourable
$1,500 Favourable

Answer(s): A

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QUESTION: 26 Exam Topic: 1, Exam Pool A

Which of the following cannot be used to split costs into fixed and variable elements?

Absorption costing
High-low method
Scattergraph
Line of best fit

Answer(s): A

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QUESTION: 27 Exam Topic: 1, Exam Pool A

CORRECT TEXT
Refer to the exhibit.

The following data relates to Department A within a business unit.

The overhead absorption rate per direct labour hour for Department A is:

Give your answer to 2 decimal places.