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:

  1. Wage rate variance
  2. Labour efficiency variance
  3. Labour mix variance
  4. Total labour cost variance

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