Business, 31.07.2021 21:10 WampWamp8751
A group of workers normally consists of 60 men, 30 women and 20 boys. They are paid at standard hourly rates as under:
Men Rs. 280.00
Women Rs. 160.00
Boys Rs. 140.00
In a normal working week of 40 hours, the group is expected to produce 5,000 units of output.
During the week ending on March 21, 2021 the group consisted of 70 men, 25 women, and 25 boys. The actual wages paid were Rs. 270, Rs. 165 and Rs. 130 respectively. 4,500 units were produced.
The Company is using Flexible Budgeting.
Calculate:
2(a) Labour cost variance
2(b)Labour rate variance
2(c) Labour efficiency variance
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