Use the information below to answer the following questions. $$\begin{array} { l c c }
& \text { Budget for April } & \text { Actual for April } \
\text { Output } & 40,000 \text { units } & 40,000 \text { units } \
\text { Sales } & \$ 400,000 & \$ 400,000 \
\text { Raw materials } & \$ 80,000 & \$ 88,000 \
\text { Labour } & \$ 200,000 & \$ 180,000 \
\text { Overheads } & 225,000 & 305,000
\end{array}$$
-Refer to the table above. The labour variance can best be described as:

Question

Use the information below to answer the following questions. $$\begin{array} { l c c } 
& \text { Budget for April } & \text { Actual for April } \
\text { Output } & 40,000 \text { units } & 40,000 \text { units } \
\text { Sales } & \$ 400,000 & \$ 400,000 \
\text { Raw materials } & \$ 80,000 & \$ 88,000 \
\text { Labour } & \$ 200,000 & \$ 180,000 \
\text { Overheads } & 225,000 & 305,000
\end{array}$$
-Refer to the table above. The labour variance can best be described as:

Quizplus · Accepted Answer

The labour variance is favourable because the actual labour cost ($180,000) is lower than the budgeted labour cost ($200,000), indicating efficient use of labour or a reduction in the hourly pay rate.

Use the Information Below to Answer the Following Questions -Refer to the Table Above