01. 
Data relating to a job are as thus:
Standard rate of wages per hour
Standard hours
Actual rate of wages per hour
Actual hours

Rs. 20
2,500
Rs. 21
2,400

You are required to calculate all the possible labour/labor variances
Solution
[LCV = − Rs. 400; LRPV =− Rs. 2,400; LEV/LUV = + Rs. 2,000;LITV = –
LMV/LGCV =0;LYV/LSUV =+ Rs. 2,000;]

02. 
The following information is obtained from a Standard Cost Card:
Labour Rate 90 Paise per hour
Hours – 4 hours per unit
Actual Production data are:
Units produced 280
Labour Rate Rs. 1.15 per hour
Hours worked 1,200
Calculate Labour Cost Variance and analyse it.
Solution
[LCV = − Rs. 372; LRPV = − Rs. 300; LEV/LUV = − Rs. 72; LITV = –
LMV/LGCV = 0 ; LYV/LSUV = − Rs. 72;]

03. 
The standard time and rate for unit component GEMMY are given below:
Standard hours
Standard rate
The actual data and related information are as under.
Actual production
Actual hours
Actual rate

15
Rs. 5 per hour
1,000 units
15,300 hrs.
Rs. 5.40 per hour.

Calculate Labour Variances.
Solution
[LCV = − Rs. 7,620; LRPV = − Rs. 6,120; LEV/LUV = − Rs. 1,500; LITV = –
LMV/LGCV = 0 ;LYV/LSUV = − Rs. 1,500;]

04. 
Standard output
Standard time per unit
Standard rate per hour
Actual output
Total actual time taken
Actual rate per hour

200 units
3 hrs.
Rs. 4
180 units
580 hours
Rs. 3.80

You are required to calculate all possible labour/labor variances
Solution
[LCV = − Rs. 44; LRPV = + Rs. 116; LEV/LUV = − Rs. 160; LITV = –
LMV/LGCV = 0 ;LYV/LSUV = − Rs. 160;]

05. 
The direct labour strength of a section of an engineering factory is 120 workers paid at the rate Rs. 8.00 per day of 8 hours each. The normal production is 1,250 pieces per week of 48 hours. During a particular week an order for 1,500 pieces was completed expending in all 7,150 hours made up of 6,000 hours at normal wages and 1,150 hours at overtime wages at double rate. The total wages come to Rs. 9,000 .Calculate the average labour cost per piece during the week and analyse the labour cost variance for the week.
Solution
[LCV = ; LRPV = ; LEV/LUV = ; LITV = –
LMV/LGCV = 0 ;LYV/LSUV = ;]

06. 
Standard hours for manufacturing two products YEM and YEN are 15 hours per unit and 25 hours per unit respectively. Both products require identical type of labour and standard wage rate per hour is Rs. 8. In a period, 8,000 units of YEM and 14,000 units of YEN were manufactured. The total labour hours actually worked were 4,75,875 and the actual wage bill come to Rs. 36,35,100. This included 18,000 hours paid for @ Rs. 8 per hour and 12,500 hours paid for @ Rs. 8.50 per hour, the balance having been paid at Rs. 7.60 per hour. You are required to calculate Labour Variances.
Solution
[LCV = ; LRPV = ; LEV/LUV = ; LITV = –
LMV/LGCV = 0;LYV/LSUV = ;]

07. 
From the following information calculate all possible labour/labor variances:

Dept. X Rs. 

Dept. Y Rs. 
Gross wages paid to direct workers 
49,980 

61,920 
Standard hours produced 
9,000 

9,000 
Standard rate per hour 
13 

18 
Actual hours worked 
9,800 Hrs. 

8,600 Hrs. 
Solution
X:[LCV = + Rs. 67,020; LRPV = + Rs. 77,420; LEV/LUV = − Rs. 10,400; LITV = –
LMV/LGCV = 0 and LYV/LSUV = − Rs. 10,400;]
Y:[LCV = + Rs. 1,00,880; LRPV = + Rs. 92,880; LEV/LUV = + Rs. 7,200; LITV = –
LMV/LGCV = 0 ; LYV/LSUV = + Rs. 7,200;]

08. 
The following information is gathered from the labour records of Binamul & Co.
Payroll allocation for direct labour Rs. 1,31,600
Time card analysis shows that 9,400 hours were worked on productions lines.
Production reports for the period showed that 4,500 units have been completed, each having standard labour time of 2 hours and a standard labour rate of Rs. 15 per hour.
Calculate the labour variances.
Solution
[LCV = + Rs. 3,400; LRPV = + Rs. 9,400; LEV/LUV = − Rs. 6,000; LITV = –
LMV/LGCV = 0 ;LYV/LSUV = − Rs. 6,000;]

