PART B.

EXERCISE 1- LO1, LO2, LO3

Halo Enterprises recently experienced a fire, forcing the company to use incomplete information to analyse operations. Consider the following data and assume that all materials purchased during the period were used in production: Direct materials: Standard price per pound: 9 Actual price per pound: 8 Price variance: 20,000F Total of direct-material variances: 2,000F Direct labour: Actual hours worked: 40,000 Actual rate per hour: 15 Efficiency variance: 28,000F Total of direct-labour variances: 12,000U Halo completed 12,000 units. Required:

Determine the following:

(4) standard labour rate per hour, and ( 5 marks)