june 2002 paper supervisors costs (help)

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
I have just looked at my answers and I don't understand how the supervisors costs have been calculated in section 2 (b). Please could someone help me.<BR><BR>thanks<BR><BR>jen<BR>

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    june 2002 paper supervisors costs (help)

    Hi Jenny<BR>Don't know if you're still up - but hopefully this will help......<BR>The supervisors can supervise production of 10,000 drums each and the budgeted production was 80,000 so 8 supervisors for each lot of 10, you then divide the budgeted costs of £160,000 by 8 to give you the wage for each supervisor - £20. The actual production is 12,500 which has to be rounded up to 13,000 again divided by 10 = 13 supervisors x £20 giving the supervisors wages of £260 for budgeted production against £258 actual.<BR>Good Luck<BR><BR>

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