Reference no: EM132591122

London Manufacturing Limited developed the following standard costs for direct material and direct labour for one of their major products, the 40 litres heavy-duty plastic container.

Each container requires the following:

Types of Cost               Standard quantity            Standard price

Direct labour                 0.2 hour                        £18 per hour

During March, London Manufacturing Limited produced and sold 5,000 containers using 1,300 direct labour hours at an average wage of £17 per hour.

Required:

Question 1: Calculate the Direct Labour Rate and Direct Labour efficiency variances.