From the information in the table, the labour ____________ variance is £1,980 adverse, and the labour ____________ variance is £1,080 favourable.

1. Efficiency ; volume

2. Volume; efficiency

3. Efficiency ; rate

4. Rate ; efficiency

 

Transcribed Image Text:

Sales Direct Material Direct Labour Fixed production overhead Fixed selling & admin overhead Budgeted (400 units) £30 3kg x £4 2-hours x £5.50 Budgeted Profit £ 12,000 4,800 4,400 2,500 1,700 -1,400 Actual (500 units) £32 2.8kg x £3.50 2.4 hours x £5 Actual Profit £ 16,000 4,900 6,000 3,200 2,300 -400 Sales Direct Material Direct Labour Fixed production overhead Fixed selling & admin overhead Budgeted (400 units) £30 3kg x £4 2-hours x £5.50 Budgeted Profit £ 12,000 4,800 4,400 2,500 1,700 -1,400 Actual (500 units) £32 2.8kg x £3.50 2.4 hours x £5 Actual Profit £ 16,000 4,900 6,000 3,200 2,300 -400

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C Efficiency rate Rate efficiency is identifying the right mix of business based on what you might a... View the full answer