PEV june 2004

System
System Posts: 100,534 🤖 Admin 🤖
edited 10:08AM in AAT student discussion
Can anyone help!<BR>im working through the past exams that are on the website, section 2 of the PEV exam from june 2004. task 2.1 a) labour capacity and labour efficiency ratio. from the answer sheets i have, iv managed to work out the efficiency ratio but i cant see how the capacity one has worked out, the nearest i get is 98.2% however the answer says 97%<BR>Can anyone point me in the right direction as its getting so close now and im starting to stress!!!<BR><BR>Thanks

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    PEV june 2004

    Labour capacity is the proportion of actual labour hours worked compared to budgeted labour hours<BR><BR>58200 hours were worked<BR>60000 hours were budgeted<BR><BR>58200/60000=0.97 x 100 = 97%<BR><BR>
  • System
    System Posts: 100,534 🤖 Admin 🤖
    PEV june 2004

    I managed to get the capacity ratio ok but can't get to the efficiency ratio! Can anyone help?
  • System
    System Posts: 100,534 🤖 Admin 🤖
    PEV june 2004

    You have to calculate the standard hours first by deviding the budgeted hours/the budgeted production units and then multiply it by the actual production<BR><BR>(60000/12000) x 11200 = 56000 hrs<BR><BR>the effeciency ratio = Standard hours x100/actual hours<BR><BR> = 56000x100/58200= 96.2%<BR><BR><BR>Hope this help
  • System
    System Posts: 100,534 🤖 Admin 🤖
    PEV june 2004

    Hi there. <BR><BR>If you have your free AAT magazine from September 2004, on page 32:" Variances-the spice of life" it gives you a run down of how to calculate each of these variances and a little info on them.<BR><BR>Hope this is of help.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    PEV june 2004

    Thanks alot for your help!<BR><BR>Fiona

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