- Labour cost variance = R.s 33,000 (F)
- Labour rate variance = R.s 33000 (F)
- Labour efficiency variance = 0
Given:
Standard Number of men = 60
Standard Number of women = 30
Standard Number of boys = 20
Standard hour rate for men = R.s 280
Standard hour rate for women = R.s 160
Standard hour rate for boys = R.s 140
Weekly working hour = 40 hours
Expected unit = 5,000 units
Number of men in march week = 70
Number of women in march week = 25
Number of boy in march week = 25
Actual wage for men = R.s 270
Actual wage for women = R.s 165
Actual wage for boys = R.s 130
Actual units = 4,500 units
Find:
- Labour cost variance
- Labour rate variance
- Labour efficiency variance
Computation:
Labour cost variance = [SC for AO] - AC
Labour cost variance = [( 70 × 280) + (25 × 160) + (25 × 140)] - [(70 × 270) + (25 × 165) + (25 × 130)] × 40
Labour cost variance = (27,100 - 26,275 ) × 40
Labour cost variance = R.s 33,000 (F)
Labour rate variance = (SR - AR) × AH worked
Labour rate variance = [(280 - 270)70 + (160 - 165)25 + (140 - 130)25]40
Labour rate variance = [700 - 125 + 250]40
Labour rate variance = [825]40
Labour rate variance = R.s 33000 (F)
Labour efficiency variance = (SH allowed - AH worked)SR
Labour efficiency variance = (0 - 0)SR
Labour efficiency variance = 0
Learn more;
brainly.com/question/22856853?referrer=searchResults
