A. Budgeted production of product V is 650 units each period. The standard cost card for product V contains the followin

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A. Budgeted production of product V is 650 units each period. The standard cost card for product V contains the following information

..........................................................................................................................£ per unit Ingredients 12 litres @ £4 per litre 48 Direct labour 3 hours @ £9 per hour 27 Variable production overhead 3 hours @ £2 per hour 6 During the latest period, 670 units of product V were produced. The actual results recorded were as follows: Ingredients purchased and used 8,015 liters £33,663 Direct labour 2,090 hours £17,765 Variable production overhead £5,434 Qn1. The ingredients price variance is:

a) £1,503 favourable

b) £1,503 adverse

c) £1,603 favourable

d) £1,603 adverse

B. The ingredients usage variance is:

a) £100 favourable

b) £100 adverse

c) £105 favourable

d) £860 adverse

C. The labour rate variance is

a) £325 favourable

b) £325 adverse

c) £1,045 favourable

d) £1,045 adverse

D. The labour efficiency variance is

a) £680 adverse

b) £720 adverse

c) £720 favourable

d) £1,260 adverse

E. . The variable overhead expenditure variance is:

a) £1,254 favourable

b) £1,254 adverse

c) £1,534 favourable

d) £1,534 adverse