[danny]

hi Sir, help me
MCQ
Michel has the following results.
10,080 hours actually worked and paid costing $8,770
If the rate variance is $706 adverse, the efficiency variance $256 favourable, and 5,000 units
were produced, what is the standard production time per unit?

1.95 hours

2.08 hours

1.96 hours

2.07 hours

[danny]

Sir please Explain this question.

Vare produces various inks at its Normanton factory. Production details for Process 1 are as follows:
Opening work-in-progress, 1 April 400 units 60% complete
Closing work-in-progress, 30 April 600 units 20% complete
Units started 1,000
Units finished 800
The degree of completion quoted relates to labour and overhead costs. Three-quarters of the materials are added at the start of the process and the remaining quarter added when the process is 50% complete. The company uses the FIFO method of cost allocation.
The equivalent units of production for materials in the period are:

a 680

b 1250

c 850

d 1000

[Author]

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