Reference no: EM132818291

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: £65,560
Material price variance: £5,960 unfavourable
Total materials variance: £22,360 unfavourable
Standard cost per pound of material: £4
Standard cost per direct labour hour: £5
Actual direct labour hours: 6,500 hours
Labour efficiency variance: £3,500 favourable
Standard number of direct labour hours per unit of Roff: 2 hours
Total 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.