Can someone please help me with this, I don't understand how they got 2hrs
Mark has the following results:
10,000 hours actually worked and paid costing $126,000.
If the rate variance is $1400 adverse, the efficiency variance $498 favourable and 5020 units were produced, what is the standard production time per unit?
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MALabour rate variance
10y ago#1In future, you must ask in the Ask the Tutor Forum if you want me to answer - this forum is for students to help each other.
The standard cost for the 10,000 hours actually worked must be 126,000 - 1,400 = 124,600.
Therefore the standard cost per hour must be 124,600 / 10,000 = $12.46
Since the efficiency variance was $498, they must have worked 498/12.46 = 40 hours less than expected.
Therefore the 5020 units were expected to take 10,000 + 40 = 10,040 hours.
Therefore the standard time per unit = 10,040 / 5,200 = 2 hours.
Sir, if 40 hours was less than expected then how many hours were expected because I taught since efficiency variance was favorable, it therefore means they have worked faster . 10000 hours were actually worked .
9y ago#3If you are wanting me to answer then you must ask in the Ask the Tutor Forum (read my previous reply).
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