"During September, 300 labour hours were worked for a total cost of Rs. 4800 The variable overhead expenditure variance was Rs. 600 (A) Overheads are assumed to be related to direct labour hours of active working.
What was the standard cost per labour hour?"
A. Rs. 14
B. Rs. 1650
C. Rs. 1750
D. Rs. 18
Answer: Option A
Solution (By Examveda Team)
Total Cost 4800 Variance was Rs. 600 (A) As Variance adverse means it is higher than standard cost So standard cost = 4800 - 600 = 4200 Labour worked 300 hours Standard cost per labour hour = 4200/300 =14Join The Discussion
Comments (1)
Related Questions on Costing
Basic objective of cost accounting is ________
A. tax compliance.
B. financial audit.
C. cost ascertainment.
D. profit analysis.
Process costing is suitable for ________.
A. hospitals
B. oil refing firms
C. transport firms
D. brick laying firms
The cost which is to be incurred even when a business unit is closed is a _____.
A. imputed cost
B. historical cost
C. sunk cost
D. shutdown cost
Plz give full solution