Dec 07 PEV

columbia

Hi Everyone

And good luck to anyone taking exams this week.

I am doing a bit of last minute study, so maybe I have overfilled my brain, but I am working on Dec 07 PEV Task 1.1 Section B iv - Fixed Capacity Variance, and I cannot see how they worked out the budgeted labour hours to 1600.

I assume it is very easy, and that I am missing the obvious, bur if anyone could assist I would be most grateful.

Kind regards

Tracy

SandyHood

Tracy
Fixed overheads are absorbed on a labour hour basis: £50.00 per labour hour

Budgeted production was 80,000 x 100 bag boxes (at 0.2 hrs per box) so 80,000 x 0.02hrs/box = 1,600 budgeted hours.

Does that help?

columbia

Thanks Sandy

I feel really silly now as that was sooooo obvious!!!

Time for a coffee and 5 mins relaxation I think!

Thanks again

Tracy