Costing - Study Mode

[#1061] "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?"
Correct Answer

(A) Rs. 14

Explanation

Solution: 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 =14

[#1062] Out of pocket costs involve payment to . . . . . . . . .
Correct Answer

(A) outsiders

[#1063] Process costing is also known as . . . . . . . . costing.
Correct Answer

(A) continuous

[#1064] Which of the following relate to measures of non-financial performance of a concern? 1. Customer satisfaction 2. Business process improvement 3. Economic value added 4. Learning organisation Select the correct answer
Correct Answer

(A) 1, 2 and 4

[#1065] The ratio for testing immediate solvency is
Correct Answer

(B) liquidity ratio