# Labour/Labor :: Single Type : Problems and Solutions

# Problem 1

Standard rate of wages per hour Standard hours Actual rate of wages per hour Actual hours | 20 2,500 21 2,400 |

**Solution**

[LCV = − 400; LRPV =− 2,400; LEV/LUV = + 2,000;LITV = – LMV/LGCV =0;LYV/LSUV =+ 2,000;]

# Problem 2

Hours – 4 hours per unit

Actual Production data are:-

Units produced 280

Labour Rate 1.15 per hour

Hours worked 1,200

Calculate Labour Cost Variance and analyse it.

**Solution**

[LCV = − 372; LRPV = − 300; LEV/LUV = − 72; LITV = – LMV/LGCV = 0 ; LYV/LSUV = − 72;]

# Problem 3

Standard hours Standard rate The actual data and related information are as under. Actual production Actual hours Actual rate | 15 5 per hour 1,000 units 15,300 hrs. 5.40 per hour. |

**Solution**

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

# Problem 4

Standard output Standard time per unit Standard rate per hour Actual output Total actual time taken Actual rate per hour | 200 units 3 hrs. 4 180 units 580 hours 3.80 |

**Solution**

[LCV = − 44; LRPV = + 116; LEV/LUV = − 160; LITV = – LMV/LGCV = 0 ;LYV/LSUV = − 160;]

# Problem 5

**Solution**

[LCV = ; LRPV = ; LEV/LUV = ; LITV = – LMV/LGCV = 0 ;LYV/LSUV = ;]

# Problem 6

**Solution**

[LCV = ; LRPV = ; LEV/LUV = ; LITV = – LMV/LGCV = 0;LYV/LSUV = ;]

# Problem 7

Dept. X | Dept. Y | ||
---|---|---|---|

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 = + 67,020; LRPV = + 77,420; LEV/LUV = − 10,400; LITV = – LMV/LGCV = 0 and LYV/LSUV = − 10,400;]

Y:[LCV = + 1,00,880; LRPV = + 92,880; LEV/LUV = + 7,200; LITV = – LMV/LGCV = 0 ; LYV/LSUV = + 7,200;]

# Problem 8

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 15 per hour.

Calculate the labour variances.

**Solution**

[LCV = + 3,400; LRPV = + 9,400; LEV/LUV = − 6,000; LITV = – LMV/LGCV = 0 ;LYV/LSUV = − 6,000;]