[sehrish]

Hi
Are they gonna publish the paper with answers before 18th Jan?
They didn’t do for sep exam.
Thanks

[sehrish]

is it 3300?

[sehrish]

oh yes. thank you 🙂

[sehrish]

what’s the standard rate in q1?

[sehrish]

Hi Fahad,
Thank you so much, that’s so helpful. please see this, planning rate variance should be 7200

SH x SR = 20,500 x 0.5 x 12 = 123000

Planning Efficiency Variance: 24,600 (A)

RSH x SR = 20,500 x 0.6 x 12 = 147600

Planning Rate VAriance: 7380 (F)

RSH x RSR = 20,500 x 0.6 x 11.4 = 140220

[sehrish]

what’s the answer of Q4?

[sehrish]

oh i got it.

$8 is contribution per unit. so we will be losing contribution of $4 per hour.

so $5 per hour we need to pay to labour and $4 is lost contribution per hour.

so new project needs 100 hrs and it becomes 100x 5+4= 900 labour cost

[sehrish]

Q4. margin of safety (revenue): $1,000,000

[sehrish]

q3: $1600 is relevant labour cost.

Please confirm, is that correct?

[Author]

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