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
Answers

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
0 
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
[email protected]
www.sandyhood.com
I recommend
http://www.amazon.co.uk/ManagementCostAccountingForDummies/dp/1118650492#0
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