Decision and Control - Paper 2 Task 1.3 A
Nataliedory
Registered Posts: 26
Hi
Can someone please explain how they get to the answer of 3,200 for Direct Labour Efficiency as i keep getting 4,200?
Can someone please explain how they get to the answer of 3,200 for Direct Labour Efficiency as i keep getting 4,200?
0
Comments
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Your standard labour is 0.5h@£10 per hour
So it should take 0.5hx3200 units=1600h
It did actually take labour 1920h
Therefore 1600-1920=320h
The hours are costed at the standard cost, so 320x10=3200
The variance is adverse because the actual labour hours taken were more than the budgeted for the same level of outputAAT Level 2. 2018 Distinction
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