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Labour efficiency variance

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Labour efficiency variance

  • This topic has 1 reply, 2 voices, and was last updated 10 years ago by AvatarJohn Moffat.
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    Posts
  • November 13, 2015 at 11:49 am #282133
    AvatarSydney
    Member
    • Topics: 3
    • Replies: 1
    • ☆

    how do l go about the question below

    A company produces units that should take 1.5 hrs to make.The standard rateof pay is $15 per hour.ldle time is expected to 10% of hours paid.

    They actually produce 20 000 units.They pay $520 000.00 for 38 000 hours, of which 3000 hours are idle.

    What is the labour effficiency variance (to the nearest $)?

    November 13, 2015 at 2:14 pm #282153
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54836
    • ☆☆☆☆☆

    You need to watch my free lecture on advanced idle time variances – I cannot type out the whole lecture here 🙂

    (Our lectures are a complete course for Paper F5 and cover everything you need to be able to pass the exam well)

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