# practice assesment sample 1 task 6 help please

clementina
Registered, Array Posts:

**12**
I was wondering can someone please help me with budgeting practice sssesment 1 task 6 both A and B please thank you.

clementina
Registered, Array Posts: **12**

I was wondering can someone please help me with budgeting practice sssesment 1 task 6 both A and B please thank you.

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## Comments

89Selling price by 5% = 6 x1.05 = 6.3

reduce sales volume by 10% = 84,000 x 0.9 = 75600

Materials are labour are variable so divide each cost by the original sales volume then multiply by the new sales volume

Energy price has already increased by 4% so you need to remove the increase then revise it to the new price of 6% 17680 / 1.04 * 1.06

Depreciation is stepped at 10,000 units so 8100 / 9 * 8

b

Stand direct labour cost = budgeted total cost / budgeting production = Standard cost * actual production

Labour rate = budgeted total cost / budgeted hours = standard rate

actual total cost / actual hours = actual rate

standard rate - actual rate * actual hours

Labour efficiacy = budgeted labour hours / budgeted production = standard efficiency

actual hours / actual production = actual efficiency

(standard efficiency - actual efficiency) * standard rate * actual production

labour cost = labour rate plus or minus your labour efficiency.

If the labour efficiency is favourable you add if its adverse minus it.

Hope this helps

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