Total Direct Labour Variance practice assessment question
gabriellenlewis
Registered Posts: 129
Budget Direct Labour Hours: 5400
Budget Direct Labour Cost: £47250
Actual Direct Labour Hours: 4230
Actual Direct Labour Cost: £38070
Calculate the TOTAL DIRECT LABOUR VARIANCE
I have tried (SH X SR) - (AH X AR) and (AH X AR) - (SH X AR) and (AH X SR) - (SH X SR).
None get the answer given (1305)????
Budget Direct Labour Cost: £47250
Actual Direct Labour Hours: 4230
Actual Direct Labour Cost: £38070
Calculate the TOTAL DIRECT LABOUR VARIANCE
I have tried (SH X SR) - (AH X AR) and (AH X AR) - (SH X AR) and (AH X SR) - (SH X SR).
None get the answer given (1305)????
0
Comments
-
missing Units and Standard Hours though...
£47,250/5,400 Lab hrs = £8.75 p/Lab hr
18,000/5,400 Lab hrs = 3 1/3rd units p/Lab hr
At Std Rate £8.75 x (15,000 Act units/3.33etc u/p Lab hr = 4,500 Std Lab Hrs) = £39,375
less Actual Cost = £38,070
Total DL variance is £1,305 F
This isn't quite how BPP show their workings (they used hours per unit) but it's how I understood it based on units per Lab Hour even though the decimal is annoying1 -
or use this formula below:
Standard cost of labour for the actual production level minus Actual cost of labour for the actual production level.1
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 (Covid-19)
- 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 off-topic 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