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Financial Performance Online exam 2

jodyewhitejodyewhite AAT Student Posts: 35
in AAT Level 4 (Level 8 in Scotland)
Hi
Can any one help with task 2 B, I can't see how they get the answer of £13.25. I have taken the variance of £14850 off the budgeted cost of £163125 the nearest I get is £13.18.

Thanks
JO
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Comments

  • hal978hal978 LondonMAAT, AAT Licensed Accountant Posts: 166
    Standard cost (SC) = £14.50 per hour (£163,125 / 11,250)
    AH = Actual hours
    AC = Actual cost

    Long way:
    LR variance = (SC x AH) - AC = £14,850
    (£14.50 x 11,880) - AC = £14,850
    AC = £172,260 - £14,850 = £157,410
    £157,410 / 11,880 = £13.25

    Short way:
    £14,850 F / actual hours (11,880) = £1.25
    £14.50 - £1.25 = £13.25
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  • jodyewhitejodyewhite AAT Student Posts: 35
    Thank you Hal978 life saver dreading next week.
    JO
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