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Where I can find the solutions for the multiple choice questions mock exam. I’ve attempted the mock exam multiple questions three times but I want to find out the solutions to the questions I got wrong but could not find it, Can you please help?
When you have finished the test, there is a button to press which lets you see which answers you got right or wrong.
On the page before the test, if you read it carefully it tells you what to do and also says that if you need the workings for any of the answers then you should ask the question here and I will help you.
Hi, John!
Could you please help with:
“Y plc produces widgets.
Each widget should take 0.5 hours to make. The standard rate of pay is $10 per hour. Idle time is expected to be 5% of hours paid.They actually produce 10,800 units. They pay $50,000 for 6,000 hours, of which 330 hours are idle.
What’s the labour efficiency variance?”
You have obviously not watched the lecture on advance idle time variances! If you do then you will have no problem 🙂
The actual hours worked are 5,670 (6,000 – 330). The standard hours of work for the actual production is 10,800 x 0.5 = 5,400.
So the efficiency variance is 5670 – 5400 = 270 x 10/0.95 = 2,842 (adverse)
(the standard rate of pay is $10 per hour, but because of the 5% idle time, the standard cost for each working hour is 10/0.95)
More than clear now, many thanks, John! Will make sure I watch the lecture as well 🙂
Regards
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