QRS Limited uses a standard costing system for all its products. QRS Limited produces Product
A) £Nil
B) £1,650 unfavourable
C) £9,350 Favourable
D) £11,000 Unfavourable

Question

Quizplus · Accepted Answer

The standard cost of production is £100,000 (10,000 units x £10). The actual cost of production is £88,650 (10,000 units x £8.87). The favourable variance is £11,350 (£100,000 - £88,650).

QRS Limited Uses a Standard Costing System for All Its