BFM Limited uses a standard costing system for all its products. BFM Limited produces Product
A) £1,800 Unfavourable
B) £4,000 Favourable
C) £4,500 Favourable
D) £6,300 Unfavourable

Question

Quizplus · Accepted Answer

The standard cost of the product is £18,000. The actual cost of the product is £13,500. The difference between the standard cost and the actual cost is £4,500. This is a favourable variance, as the actual cost is lower than the standard cost.

BFM Limited Uses a Standard Costing System for All Its