|
Annual budgeted fixed overhead costs for normal capacity level of 10,000 articles reviewed and edited
|
$600,000
|
|
|
|
Standard professional hours per 10 articles
|
200
|
|
|
|
Flexible budget of standard labor costs to process 10,000 articles
|
$10,000,000
|
|
|
|
|
|
|
|
|
|
|
| The following data apply to the 9,500 articles that were actually reviewed and edited during the current year. |
|
|
Total hours used by professional staff
|
192,000
|
|
|
|
Flexible costs
|
$9,120,000
|
|
|
|
Total cost
|
$9,738,000
|
|
|
| Awnser |
|
|
|
|
Standard |
Actual |
|
| articles |
10,000.00 |
9,500.00 |
|
| Standards hours Req per article |
200,000.00 |
190,000.00 |
|
| standard hours per Article |
20.00 |
|
|
|
Actual hours to produce 9500Articles
|
|
192,000.00 |
|
|
USD |
|
|
| Budgeted |
10,000,000.00 |
|
|
| Cost per Hour |
50.00 |
|
|
|
|
|
|
|
|
|
|
| Labor Efficiency Variance=(Standard Hours−Actual Hours)×Standard Rate |
|
(100,000.00) |
unfavorable |
------------------------------
Saqib Baig
Abu Dhabi
United Arab Emirates
------------------------------