Contribution per labour hour

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
Please if any could help with this, have tired and tried????? <BR><BR>Gemma

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    Contribution per labour hour

    I take it you are looking at limiting factors. You need to calculate the contribution the normal way ie sales revenue less any variable cost of sales (include direct labour, material, overheads and selling cost)<BR><BR>Then you need to find the time it would take to produce 1 unit of that product using the resource that has been limited ie direct labour.<BR><BR>So using the ECR 2004 example<BR><BR>Exe produces 2000 units at 1000labour hours = 1000/2000= 0.50 labour hours per unit<BR><BR>Then the calculation would be<BR><BR>Contribution / direct labour per unit= £17.50/0.50 = £35.00 per direct labour hour.<BR><BR>Hope this helps
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Contribution per labour hour

    yes thanks, that's the queation I have been doing.<BR><BR>Gemma
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Contribution per labour hour

    Ive answered this as well on the message before, so worth having a look at the messages from that.

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