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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › Variance
Std.Labour cost of actual hours worked=$116000
Std.hrs worked=30,000
Labour rate variance=$5800(F)
Labour efficiency variance=$4000(F)
Actual rate of pay per hour was $______.
Sir,can you help me with this?
The answer for this question is $3.8
The standard cost for the standard hours worked must be 116,000 + 4,000 = 120,000.
Therefore the standard cost per hour must be 120,000/30,000 = $4.
Therefore they must have worked 4,000/4 hours fewer than standard, so must have actually worked for 29,000 hours.
The actual cost for the actual hours worked is 116,000 – 5,800 = 110,200
Therefore the actual cost per hour is 110,200 / 29,000 = $3.80.
Thank you Sir
You are welcome 🙂