# PEV December 2006

confused!!
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**130**Registered
Hi

I wonder if anyone can help me...

What is the difference between Direct labour efficiency and Fixed overhead efficiency? I seem to always struggle with these ones :mad2:

Also, can anyone helo me understand why on task 1.1 b) the fixed overhead variance, why you have to X by the stadard labour hours per meal (0.25) and the standard usage of materials per meal (0.50) ??

Sorry if I am not making any sense but any help would be appreciated :glare:

I wonder if anyone can help me...

What is the difference between Direct labour efficiency and Fixed overhead efficiency? I seem to always struggle with these ones :mad2:

Also, can anyone helo me understand why on task 1.1 b) the fixed overhead variance, why you have to X by the stadard labour hours per meal (0.25) and the standard usage of materials per meal (0.50) ??

Sorry if I am not making any sense but any help would be appreciated :glare:

## Comments

2,034Registered, ModeratorSo the labour efficiency variance is found as the standard rate per labour hour times the difference between the standard labour hours produced less the actual hours worked;

and the fixed overhead efficiency variance is found as the overhead absorption rate times the difference between the standard labour hours produced less the actual hours worked.

These two variance are very closely linked, and if one is adverse the other

mustalso be adverse.Has my earlier comment answered this?

The standard hours per meal x the meals produced = standard hoursMy PEV revision day closest to Maidstone is on 15 November in London[email protected]

www.sandyhood.com

2,034Registered, Moderator15 November is now full

Bookings can now be made for Sunday 16 November (at the same venue)

[email protected]

www.sandyhood.com