Page 390 - F2 - MA Integrated Workbook STUDENT 2018-19

Chapter 15

Calculating actual or standard from

variance data

One way that the examiner can easily test your understanding of variances is to ask
you to calculate the following instead of straightforward variance calculations:

 actual figures from variances and standards

 standards from variances and actual figures.

Test your understanding 9

During a period 17,500 hours were worked at a standard cost of $6.50 per
hour. The labour efficiency variance was $7,800 favourable

The number of standard labour hours expected for the output achieved was:

A 1,200

B 16,300

C 17,500

D 18,700

Test your understanding 10

The standard cost card for product K shows that each unit requires four hours
of direct labour at a standard rate of $8 per hour. Last period 420 units were
produced and the direct labour cost amounted to $15,300. The direct labour
efficiency variance was $160 adverse.

The actual rate paid per direct labour hour is $

382