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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › variances
the direct labor efficny in a period was $1920fav
the standrd direct labor rate $12 pr hour
and the standard direct labor cost of the output in the period ws $69600
wat was the direct labor hours worked in de period?
sir john could u show me the caculation n xplain the answer ….
If the standard total labour cost is 69600, then the standard hours for the actual production must have been 69600 / 12 = 5,800.
Since the efficiency variance was 1920, if means we must have worked 1920 / 12 = 160 hours faster than expected.
So we must have actually worked 5800 – 160 = 5640 hours
thanxz sir john 😛
You are welcome, Esti 🙂