Question: The standard labour component and the actual labour component engaged during the month are given below: Skilled Semi-skilled Unskilled (a) Standard number of workers in
The standard labour component and the actual labour component engaged during the month are given below:
Skilled Semi-skilled Unskilled
(a) Standard number of workers in a group 30 10 10
(b) Standard wage rate (E) 20 12 8
(c) Actual number of workers employed during the month in the group
24 15 12
(d) Actual wage rate per hour (E) 24 10 8
During the month of 200 working hours, the group produced 9,600 standard hours of work.
You are required to calculate:
- Wage rate variance
- Labour efficiency variance
- Labour mix variance
- Total labour cost variance
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