The standard output of production EXE is 25 units per hour in a manufacturing department of a company employing 100 workers. The standard wage rate per labour hour is Rs.6.

In a 42 hours week, the department produced 1040 units of the product despite 5% of the time paid were lost due to an abnormal reason. The hourly wage rate actually paid were Rs.6.20, Rs.6 and Rs.5.70 respectively to 10, 30 and 60 of the workers. Compute various relevant labour variances.

Answer rating: 100% (QA)

Given Standard output per hour 25 units Number of workers 100 Standard wage rate per labor hour Rs 6 ... View the full answer