Home For AAT student members AQ 2016 Professional Diploma in Accounting Management Accounting: Decisions and Control
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Decision and Control - Paper 2 Task 1.3 A


Can someone please explain how they get to the answer of 3,200 for Direct Labour Efficiency as i keep getting 4,200?


  • dumutrobadumutroba AAT Student, AATQB Posts: 264
    edited January 2019
    Your standard labour is [email protected]£10 per hour

    So it should take 0.5hx3200 units=1600h
    It did actually take labour 1920h
    Therefore 1600-1920=320h
    The hours are costed at the standard cost, so 320x10=3200
    The variance is adverse because the actual labour hours taken were more than the budgeted for the same level of output
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