Material & Labour Calculations Flashcards Preview

AAT Budgeting L4 AQ2016 > Material & Labour Calculations > Flashcards

Flashcards in Material & Labour Calculations Deck (12)
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1

£ per kilo formula

Total cost / materials used

2

Material used formula

Materials used / units produced

3

Flexed budget (standard cost) materials

Kilo per unit X. Units produced. X standard price

4

Flexed budget - labour

No of mins / 60 mins X Units produced X Rate (£)

5

Labour rate formula

Total cost / no of hours

6

Overtime required formula

1) No of staff X no basic hours
2) no of mins / 60 mins X units produced

2 Minus 1

7

Material purchases (incl wastage during production)

1) 100/(100-wastage%) X units to manufacture

2) answer to 1 X Kg per unit

3) answer to 2 MINUS opening inventory ADD closing inventory

8

Direct labour hours formula

No of mins/60 mins. X. Total no of units

9

Production in-house formula

No of employees X total number of hours (including O/T) / (no of mins/ 60)

10

How to calculate: (Materials budget)
1) Flexed budget
2) standard cost
3) usage variance
4) price variance

1) kilo per item X £ per item X units sold

2) £ per item X materials used

3) difference between 1 and 2

4) difference between 2 and the actual cost (given in notes)

11

How to calculate: (labour budget)
1) flexed budget
2) standard budget
3) efficiency variance
4) rate variance

1) no of mins/60 mins X units sold X £ per unit

2) £ per hour X no of hours used

3) difference between 1 and 2

4) difference between 2 and actual cost (given in notes)

12

How to calculate units to be sub-contracted?

1) No of mins per unit / 60 mins
2) No of hours available / Answer from point 1
3) total number of items to make - answer from point 2