June 2007 pev

Louise:)

task 1.2 (IV)

Labour = 37125

if the 10 extra staff were hired to decrease the o/t hours.... why is the revised labour hrs difference charged at o/t rate per hour.

SandyHood

Please can you confirm the question?
I have looked at J07 PEV 1.2
It has a) b) and c) and refers to soft fruit prices for vitamins

Louise:)

hello...sorry its PCR.

1.2 A (iv) the calculation on Labour

SandyHood

task 1.2 (IV)

task 1.2 (IV)

a revised budgeted operating statement for the luxury model.

Louise:)

ye thats the one....its just that they have 10 extra staff to decrease o/t...and they paythem unsing the o/t premium.

confused ....

SandyHood

I'll work it through on a spreadsheet

SandyHood

I agree with you
Ignore the model answer
I think it is probably a working document to enable markers to see alternative marks
but this is the luxury model labour cost based on hours paid 3,850 @£10 per hour = £38,500

No mention is made of idle time. I'm sure that you spotted 675 hours paid but not worked, but a note to the effect that this has been treated as direct cost should be sufficient (afterall overtime premium is being treated as direct)