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Aztec Bromac budgeted the following cost standards for the current year: Direct materials = 2.8 kilos per unit @ $3.00 per kilo Direct labour =
Aztec Bromac budgeted the following cost standards for the current year: Direct materials = 2.8 kilos per unit @ $3.00 per kilo Direct labour = 1.5 hours per unit @ $6 per hour Actual production and costs were as follows: Units produced = 3,600 Direct materials used = 9,000 kg. Direct materials purchased = 10,000 kg. @ a cost of $29,000 Direct labour incurred = 4,000 hours at a cost of $26,000 The labour efficiency variance was Question 13Answer A. $8,400 U B. $10,000 F C. $2,000 U D. $8,400 U
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