ECR past paper Dec 2003
Sally5065
Registered Posts: 48 Regular contributor ⭐
Hi,
My mind has gone blank!!! I am completing task 2.3 on the past exam paper December 2003. There is a limiting factor for labour hours of 3,000. I can't remember how to get to Labour hours per unit.
I have the filled out the unit contribution for each product and when looking at the answer sheet for labour hours per unit I can't think of the calculation to do this. They have 0.5 for Exe, 0.4 for Wye and 0.4 for Zed. What formula is used for the contribution per labour hour also?
Thanks
Sally
My mind has gone blank!!! I am completing task 2.3 on the past exam paper December 2003. There is a limiting factor for labour hours of 3,000. I can't remember how to get to Labour hours per unit.
I have the filled out the unit contribution for each product and when looking at the answer sheet for labour hours per unit I can't think of the calculation to do this. They have 0.5 for Exe, 0.4 for Wye and 0.4 for Zed. What formula is used for the contribution per labour hour also?
Thanks
Sally
0
Comments
-
Hi,
Labour hours per unit is number of Labour hours divided by number of units
e.g. EXE 1000 labour hours divided by 2000 units = 0.5 labour hours per unit.
Contribution per labour hour is contribution per unit divided by number of labour hours.
e.g. EXE 17.5 (contribution per unit) divided by 0.5 (labour hours per unit) = 35 contribution per labour hour.
Hope this helps.
Emma0 -
ECR past exam
Hi Emma,
Thanks for your help.
Sorry to be thick - Can I just clarify the labour hours per unit:-
I do not get 0.4 for Wye and Zed.
Wye - 1,000 direct labour hours / 3,000 for Wye = 0.33
and for Zed 1,000/ 5,000 = 0.2.
I don't understand how they get 0.4 for both - sorry if this sounds thick - I have looked through my study books but it isn't any clearer!!!
I'm suring it is staring me in the face.......
Regards
Sally0 -
Hi Sally,
You need to look at labour hours for each product EYE/WYE/ZED individually.
For Wye there are 1200 labour hours available, and 3000 units.
Labour hours per unit is 1200/3000 = 0.4 labour hours per unit for WYE.
For Zed you have 2000 labour hours available and 5000 units.
Labour hours per unit for Zed is worked out as 2000/5000 = 0.4 labour hours per unit for Zed.
You are not being thick, I couldn't understand it when I first learnt about it.
Emma0 -
ECR past exam paper
Hi Emma,
Thank you for your help. I was confusing myself with the calculations.
Regards0
Categories
- All Categories
- 1.2K Books to buy and sell
- 2.3K General discussion
- 12.5K For AAT students
- 321 NEW! Qualifications 2022
- 164 General Qualifications 2022 discussion
- 11 AAT Level 2 Certificate in Accounting
- 56 AAT Level 3 Diploma in Accounting
- 87 AAT Level 4 Diploma in Professional Accounting
- 8.8K For accounting professionals
- 23 coronavirus (Covid-19)
- 272 VAT
- 92 Software
- 273 Tax
- 135 Bookkeeping
- 7.2K General accounting discussion
- 200 AAT member discussion
- 3.8K For everyone
- 38 AAT news and announcements
- 345 Feedback for AAT
- 2.8K Chat and off-topic discussion
- 582 Job postings
- 16 Who can benefit from AAT?
- 36 Where can AAT take me?
- 42 Getting started with AAT
- 26 Finding an AAT training provider
- 48 Distance learning and other ways to study AAT
- 25 Apprenticeships
- 66 AAT membership