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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 John Moffat.
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  • April 24, 2015 at 12:55 pm #242454
    Ursula
    Member
    • Topics: 2
    • Replies: 1
    • ☆

    Please kindly help me solve this question
    Y plc produces widgets
    Each widget should take 0.5hrs to make. The standard rate to pay is $10 per hour. Idle time is expected to be 5% of the hours paid.
    They actually produced 10800,they paid $50000 for 6000hrs of which 330hrs are idle.
    What is the labour efficiency variance?

    April 24, 2015 at 5:33 pm #242490
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54835
    • ☆☆☆☆☆

    I will happily help you, but first tell me whether you have watched the free lecture on idle time variances (because it is in that lecture that I go through a very similar example) ?

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