Raleigh Enterprises manufactures bicycles. During the year 3 000 bicycles were produced. The actual labour time was
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Question:
Raleigh Enterprises manufactures bicycles. During the year 3 000 bicycles were produced. The actual labour time was 28 000 hours at a total cost of R2 660 000. Raleigh Enterprises had the following labour standard for the 4 000 bicycles that it expected to produce during the year: 9 hours per unit at R90 per hour
Calculate the following variances from the information provided below. In each case also state whether the variance is favourable or unfavourable.
1.4.1 Labour rate variance (2 marks)
1.4.2 Labour efficiency variance (3 marks)
1.4.3 Total labour variance without using the labour rate variance and labour efficiency variance. (3 marks)
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