March/june 2016 question 5

Hi My dear Tutor, I have a question.

there is a criteria saying that “when overtime is required workers are paid 25% more than their usual hourly rate”-from my point of view in this case actual hours worked at revised rate” should have updated 25% more extra 2% pay rise such as:

Revised labor cost (14$*102%/100%)=14.28 *125%/100%=17.85
that is why , the accountant failed to take into account overtime pay rise.
if we calculate by taking into account overtime pay then labor rate variance would have favorable

Should be but the accountant forgot to take into overtime pay rise
Actual hours worked at actual rate-531930
Actual hours worked at revised rate-660450
(37000*17.85

labor rate operational variance =128520F

here we give why it is adverse because overtime has not been taking into account to update pay rise for some overtime.I calculated in this way and gave the explanation like above.

Labor rate operational variance

Actual hours worked at actual rate–531930
Actual hours worked at revised rate-(528360)
(37000hours*14.28)
labor rate operational variance—–3570A

Did i get it right?