Question 1143183
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Question:   A company has a standard labour cost of 180.6 this year. The standard labour rate is 86 per hour. 
Last month 2200 hours were worked and there was an adverse labour efficiency variance of 8600. 
This variance was caused entirely by new working practices introduced into the company. 
The full effect of the new working practices is to be incorporated into the new standard cost of the product for next year. 
In addition a labour rate increase of 10% is to be built into the new cost.
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