Budgeting Practice Paper 1 Question 1.7B 2013 Version

Deaniedani

I'm having trouble calculating the labour rate variance. I am able to do the others but not that one. I know the answer is 56,100 but i don't know the calculation to get that answer. Can anyone help me please?

PeterC

The actual labour rate is £5.80 per hour (£1,626,900/280,500 hrs)
The planned rate was £6 per hour (£1,728,000/288,000 hrs)
So the saving is £0.20 per hour and they had to pay for 280,500 hours
so the total saving is £56,100 (0.20 x 280,500)

For further guidance, try media.wix.com/ugd/9a8e75_f0f54f3053e64e40843adb41aa27c44d.pdf

Deaniedani

Thank you

agunia73

Hi, I need help with depteciation assessment 1 and 2 Task 6, help, please