Home For AAT student members AQ 2013 AAT Level 4 (Level 8 in Scotland)

FINANCIAL PERFORMANCE practice assessment Labour Rate question

Delta manufactures 5400 units, using 11880 labour hours. The budgeted production was 5000 units using 11250 labour hours at a cost of £163125. The labour rate variance is £14850 favourable.

Calculate the actual labour rate per hour.



So, I started by 163125 - 14850 = 148275
Then I divided this by standard labour hours (148275/ 11250) and got 13.18. But the answer is 13.25?!

Best Answer

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