Page 114 - P1 Integrated Workbook STUDENT 2018
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Chapter 7
Labour efficiency variance
(SH – AHw) × SR
SH = 4 hours per unit × 1,100 units produced = 4,400 hours
AHw (actual hours worked) = 4,180 hours
SR = $15 per hour
Variance = (4,400 – 4,180) × $15 = $3,300
Idle time variance:
Actual hours worked × standard rate per hour 63,000
Actual hours paid × standard rate per hour 62,700
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Idle time variance this is always adverse $300 A
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Illustrations and further practice
Now try examples 5 and 6 from Chapter 8 as well as illustration 1.
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