PEV June 2008

columbia Registered Posts: 580 Epic contributor 🐘
Hi everyone,

Hope the revision is going well for those taking the final written ones next week.

I am currently working on June 2008, task 1.1 (b) (ii)

Direct Labour efficiency Variance.

I thought it was Standard Labour Hours - Actual Labour Hours x Standard Labour Rate, but when checking my answers they have used the Actual labour rate.

Have I been using the wrong formula the whole time?????




  • crispy
    crispy Registered Posts: 466 Dedicated contributor 🦉

    Your formula looks correct to me, I make it:

    Standard: 210 Tonnes @ 3 hours each = 630 Hours X £8 = 5,040
    Actual: 600 Hours x £ 8 = 4,800

    Variance £ 240 (F)

    Looks all good to me
  • columbia
    columbia Registered Posts: 580 Epic contributor 🐘
    Thanks Crispy

    Yes, it was me. I had written down that the standard labour rate was £8.50 when in fact it was £8, so when I read the answer I wondered why they were using £8.

    Sorry, it's a case of exam cram overload!!!

    Time for a coffee me thinks!!

    Thanks a lot.

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