budgets help again!!

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
could someone help me out with this question.<BR><BR>question<BR><BR>the company has a production workforce of 400 employess. the basic weekly wage per employee is £180 for a 36 hour week. Any overtime is paid at a rate of £8 per hour.<BR><BR>Each unit takes 4 hours to make and the workforce operates at an efficiency level of 80%.<BR><BR>For periods 1 to 3 prepare:<BR><BR>the labour budget in hours highlighting any overtime hours required.<BR><BR>the labour cost budget including the cost of any overtime.<BR><BR>production for periods:<BR><BR>period 1 period 2 period 3<BR>12,150 12,750 13,110<BR><BR>many thanks if anyone can help me<BR><BR>sebula<BR><BR>p.s. is there a set formula to work this out?

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    budgets help again!!

    How many weeks in each period?<BR><BR>I sent you a layout yesterday<BR><BR>For this question<BR>1. Find the total basic hours available<BR>No of employees x Hours each work each week x weeks in the period<BR><BR>2. Find hours needed to make the unit<BR>Standard time divided by % efficiency<BR>(<i>I have assumed that 4 hours per unit is the standard time so at 80% efficiency it would take 5 hours</i>)<BR><BR>3. Labour hours budget<BR>Lay this out in columns - one for each period<BR>Production<BR>Hrs per unit<BR>Hrs required<BR>Hrs available<BR>Overtime hours needed<BR><BR><i>Production x hrs per unit = hrs required, hrs required - hrs available = overtime hrs needed</i><BR><BR>4. Labour cost budget<BR>Use the same columns<BR>Basic <i> no of employees x rate per week x no of weeks in period</i><BR>Overtime <i> overtime hours needed x overtime rate per hour</i><BR><BR><a target=new class=ftalternatingbarlinklarge href="mailto:sandy.hood@chichester.ac.uk">Sandy's email</a> if you want to see my solution

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