Assessment 2 task 1.3
Options
Rose20
Registered Posts: 7
Comments
-
From the budget report you can see variable overheads are based on labour hours. Budgeted at £3000 per 1500 labour hours. So costing £2pLH
Efficiency variances are based on capacity(units)/actual. EF=C/A
With the units budgeted of 3000 we can see 1500 labour hours. So 0.5LH per unit
With the actual there are 3200 units so should expect 1600 labour hours.
Where infact there is 1920 labour hours. So more hours needed than budget meaning staff being less efficient therefor an adverse variance.
To work out the variance cost we find the difference 1600-1920= 320 labour hours then times by the variable cost per labour hour worked out at £2pLH = £640 adverse variance0
Categories
- All Categories
- 1.2K Books to buy and sell
- 2.3K General discussion
- 18.9K For AAT students
- 269 NEW! Qualifications 2022
- 148 General Qualifications 2022 discussion
- 9 AAT Level 2 Certificate in Accounting
- 44 AAT Level 3 Diploma in Accounting
- 65 AAT Level 4 Diploma in Professional Accounting
- 8.9K For accounting professionals
- 23 coronavirus (Covid-19)
- 274 VAT
- 92 Software
- 275 Tax
- 138 Bookkeeping
- 7.3K General accounting discussion
- 195 AAT member discussion
- 3.8K For everyone
- 38 AAT news and announcements
- 352 Feedback for AAT
- 2.8K Chat and off-topic discussion
- 590 Job postings
- 17 Who can benefit from AAT?
- 36 Where can AAT take me?
- 44 Getting started with AAT
- 26 Finding an AAT training provider
- 48 Distance learning and other ways to study AAT
- 25 Apprenticeships
- 65 AAT membership