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The Geurtz Company uses standard costing. The company makes and sells a single product called a Roff. The following data are for the month of August:
Actual cost of direct material purchased and used: £65,560Material price variance: £5,960 unfavourableTotal materials variance: £22,360 unfavourableStandard cost per pound of material: £4Standard cost per direct labour hour: £5Actual direct labour hours: 6,500 hoursLabour efficiency variance: £3,500 favourableStandard number of direct labour hours per unit of Roff: 2 hoursTotal labour variance: £400 unfavourable
Problem 1: The total number of units of Roff produced during August was:
Multiple Choice Option 1: 10,800 units. Option 2: 14,400 units. Option 3: 3,600 units. Option 4: 6,500 units.
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