financial performance sample test1 2013 question 1.3 part c

Scorpio1985
Scorpio1985 Registered Posts: 1 New contributor 🐸
in AAT Level 4 (Level 8 in Scotland)
can anyone help with this question i really can't work this out???

thanks in advance

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  • dsingh953
    dsingh953 Registered Posts: 1
    Hi,

    the fixed overhead capacity is worked out by:
    (Actual hours taken x BOAR per hour) - standard hours per unit x BUDGETED units produced ( BUDGETED output) x BOAR per hour
    the fixed overhead efficiency variance is calculated as followed:
    standard hours per unit x actual units produced (output) x BOAR per hour - (Actual hours taken x BOAR per hour).

    I hope this helps, I could have worked the answer out, but though it would be better for you to do by just knowing the formulaes, let me know how you get on :)

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