Pev dec 2007
nosaj
Registered Posts: 20 New contributor 🐸
TASK 1.1 B iV FIXED OVERHEAD CAPACITY VARIENCE
CAN SOMEONE PLEASE ASSIST ME IN CALCULATING THE CAPACITY VARIANCE, I AM GETTING CONFUSED. THANKS FOR HELP
CAN SOMEONE PLEASE ASSIST ME IN CALCULATING THE CAPACITY VARIANCE, I AM GETTING CONFUSED. THANKS FOR HELP
0
Comments
-
(Actual hours worked - Budgeted hours) x OAR per hour
Actual hours worked = 1,800 hours
Budgeted hours = 80,000 boxes x 0.02 hours per box = 1,600 hours
Actual hours - Budgeted hours = 200 more hours worked than budgeted (more capacity to produce)
Capacity variance: 200 hours x £50.00 per hour = £10,000 favourableSandy
sandy@sandyhood.com
www.sandyhood.com0 -
thanks again Sandy I know the formula but could not seems to find the budgeted hours0
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