Financial Performance practice assessment 1 task 3

Hi Everyone,

I am in need of help for questions 1.9 and 1.3 from AAT assessment 1
I have an exam coming up on the 27th April and I'm hoping someone can enlighten me on the breakdown calculation.

Question 1.3 is a follows:

Production Units: Budget Actual
64,000 67,000
Direct labour cost 5,760,000 5,895,000

Fixed overheads 3,840,000 3,950,000

Overheads are absorbed on a labour hour basis and budget uses 480,000 labour hours. The actual labour hours used to produce 67,000 units totalled 536,000 labour hours.

Fixed overhead capacity?

Fixed overhead efficiency?


Thanks.