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EnglandAccountingQuick questions

3.2 Management accounting

Quick questions on Standard costing and variances: material, labour and sales analysis - AQA A-Level Accounting

2short Q&A pairs drawn directly from our worked dot-point answer. For full context and worked exam questions, read the parent dot-point page.

What is q1?
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Define a favourable variance. [1 mark] When the actual result is better than the standard or budget (a lower cost or a higher revenue).
What is q2?
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Standard rate is 1212 per hour and actual is 1313 for 100100 hours. Calculate the labour rate variance. [2 marks] (1213)×100=100(12 - 13) \times 100 = -100, that is 100100 adverse.

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