Financial Performance practice assessment 1 task 3

C200sp

Hi Everyone,

I am in need of help for questions 1.9 and 1.3 from AAT assessment 1
I have an exam coming up on the 27th April and I'm hoping someone can enlighten me on the breakdown calculation.

Question 1.3 is a follows:

Production Units: Budget Actual
64,000 67,000
Direct labour cost 5,760,000 5,895,000

Fixed overheads 3,840,000 3,950,000

Overheads are absorbed on a labour hour basis and budget uses 480,000 labour hours. The actual labour hours used to produce 67,000 units totalled 536,000 labour hours.

Fixed overhead capacity?

Fixed overhead efficiency?


Thanks.

C200sp

Hope someone can help!