Page 138 - P1 Integrated Workbook STUDENT 2018
P. 138
Chapter 8
The weighted average cost of jobs is $800
Standard yield of actual hours 1.1
Actual yield (output) 1.0
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0.1
@ Standard cost per hour of output $800
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Variance $80 A
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Mix variance – individual units method
Labour type Standard Actual Difference @ Standard Variance
mix mix rate
Manager 5.5 6 0.5 A $30 $15 A
Senior 22 15 7 F $15 $105 F
Junior 38.5 45 6.5 A $10 $65 A
66 66 $25 F
Mix variance – weighted average method
Labour type Standard Actual Difference @ Standard Variance
mix mix rate
Manager 5.5 6 0.5 A $16.67 $8.34 A
Senior 22 15 7 F $1.67 $11.69 F
Junior 38.5 45 6.5 A $3.33 $21.65 F
66 66 $25 F
The weighted average cost of inputs = $800/60 = $13.33 per hour
Illustrations and further practice
Now try the illustration on ‘Labour variances in service industries’ from Chapter 10.
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