finanical performance 2013 exam 2
johnb1984
Registered Posts: 1
hi
I'm having trouble working out the actual labour rate on 2013 exam 2 1.2b
question delta manufactures 5,400 units using 11,880, the budgeted production was 5000 units using 11250 hours at a cost of 163125. the labour rate variance was 14850 favourable.
what is the actual labour rate per hour
please can you help me to work it out
I'm having trouble working out the actual labour rate on 2013 exam 2 1.2b
question delta manufactures 5,400 units using 11,880, the budgeted production was 5000 units using 11250 hours at a cost of 163125. the labour rate variance was 14850 favourable.
what is the actual labour rate per hour
please can you help me to work it out
0
Comments

Please try these steps before looking at my answers:
Budgeted cost
Budgeted hours.......= Standard rate per hour
Actual hours used x standard rate per hour = Standard labour cost of the hours worked
Standard labour cost of the hours worked +(adverse)/(favourable) labour rate variance = Actual labour cost
Actual labour cost
Actual hours used.......= Actual labour rate per hour
Sandy
sandy@sandyhood.com
www.sandyhood.com0 
Putting numbers in:
£163,125
...11,250.......= £14.50 per hour
11,880 x £14.50 per hour = £172,260
£172,260  £14,850 labour rate variance = £157,410
£157,410
...11,880.......= £13.25 per hour
I hope this has helped. I also hope you are looking at this reply having attempted the answer already on your own. I hope we agree on £13.25
Yours
Sandy
sandy@sandyhood.com
www.sandyhood.com
I recommend
http://www.amazon.co.uk/ManagementCostAccountingForDummies/dp/1118650492#Sandy
sandy@sandyhood.com
www.sandyhood.com0
Categories
 All Categories
 1.2K Books to buy and sell
 2.3K General discussion
 12.5K For AAT students
 323 NEW! Qualifications 2022
 165 General Qualifications 2022 discussion
 11 AAT Level 2 Certificate in Accounting
 56 AAT Level 3 Diploma in Accounting
 88 AAT Level 4 Diploma in Professional Accounting
 8.8K For accounting professionals
 23 coronavirus (Covid19)
 272 VAT
 92 Software
 273 Tax
 135 Bookkeeping
 7.2K General accounting discussion
 200 AAT member discussion
 3.8K For everyone
 38 AAT news and announcements
 345 Feedback for AAT
 2.8K Chat and offtopic discussion
 582 Job postings
 16 Who can benefit from AAT?
 36 Where can AAT take me?
 42 Getting started with AAT
 26 Finding an AAT training provider
 48 Distance learning and other ways to study AAT
 25 Apprenticeships
 66 AAT membership