Turnover and Value added
jmh
Registered Posts: 42
Hello,
Can someone help with this please:
Value added per employee 46000
Cost of material used 1788000
Cost of bought in services 432000
if business has 20 employees calculate the total turnover
if 8000 units were produced calculate the value added per unit produced
thank you
Can someone help with this please:
Value added per employee 46000
Cost of material used 1788000
Cost of bought in services 432000
if business has 20 employees calculate the total turnover
if 8000 units were produced calculate the value added per unit produced
thank you
0
Comments

Total value added = total turnover  total costs.
(46,000 *20) = Total turnover  1,788,000  432,000.
Rearrange to get total turnover = £3,140,000.
Value per unit produced = total value/number of units.
(46,000 * 20)/8000 = £115.00
Matthew Dearlove MAAT
Currently on CIMA Management Level. Passed P2, F2 and E2. Preparing for November 19 MCS.0 
thank you!
Can you please help me with something else.
The product requires 3 hours of labour at a cost of £15 per hour.During the month the company used 1,500 labour hours to produce 450 units and the labour rate variance was £420 favourable.
Calculate the actual labour rate per hour. £
thank you0 
Labour rate variance = (standard price per hour * actual hours at actual production)  (actual price per hour * actual hours at actual production).
I'll denote actual price per hour as X.
£420.00 = (£15.00 * 1500)  (X * 1500)
£420 = £22,500  1500X
X = £22,080/1500 = £14.72
Matthew Dearlove MAAT
Currently on CIMA Management Level. Passed P2, F2 and E2. Preparing for November 19 MCS.0 
thank you. I honestly don't think I will ever be able to get my head around those Variances. Surely this is not difficult, must be having mental blockage with this.
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