# Finanical Performance Practice Paper 2 task 1.3a

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can somebody tell me the formula of how to work out the fixed overhead efficiency?

can anybody tell me a easy way to work out the;

Fixed over head capacity

Fixed overhead expenditure

Fixed overhead efficiency

Many Thanks in Advance

can anybody tell me a easy way to work out the;

Fixed over head capacity

Fixed overhead expenditure

Fixed overhead efficiency

Many Thanks in Advance

## Comments

2,034Registered, Moderator(Standard labour hours produced - Actual labour hours worked) x standard labour rate per hour = Labour efficiency variance?

If so, then

(Standard labour hours produced - Actual labour hours worked) x standard overhead absorption rate per labour hour = Fixed overhead efficiency variance

If not, please state the labour effiency variance formula that you use.

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2,034Registered, ModeratorNot quote the answer to your question but hopefully these 2 points help.

Remember:

If more labour hours are actually worked than budgeted,

then the business has the capacity to produce moreandfixed overhead capacitymust befavourable.If the actual fixed overhead cost is more than budgeted

fixed overhead expendituremust beadverse.[email protected]

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2,034Registered, ModeratorI hope this helps with the first question on 1.3

Attachment not found.

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