# Turnover and Value added

jmh
Registered Posts:

**41**
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

## Comments

96(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 =

£115.00Matthew Dearlove MAATCurrently on CIMA Management Level. Passed P2 and F2, studying E2.

41Can 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 you

96I'll denote actual price per hour as X.

£420.00 = (£15.00 * 1500) - (X * 1500)

£420 = £22,500 - 1500X

X = £22,080/1500 =

£14.72Matthew Dearlove MAATCurrently on CIMA Management Level. Passed P2 and F2, studying E2.

41