| 01. |
M/s Anil Manufacturers have specified the following standard cost for a product:
Time 12 hours per unit
Cost Rs. 15 per hour
For the period ending 31st March, 1990, the actual performance was:
Production 1,500 units
Hours taken:
| Production | 12,000 | hours |
| Idle Time | 800 | hours |
| 12,800 | hours |
Payment made Rs. 1,97,120 (average p.h. Rs. 15.40).
Calculate Labour Variances.
Solution
[LCV = ; LRPV = ; LEV/LUV = ; LITV = –
LMV/LGCV = 0;LYV/LSUV = ;]
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| 02. |
The standard output of product ‘MEX’ is 40 units per hour in manufacturing department of a company employing 150 workers. The standard wage rate per labour hour is Rs. 8
In a 48-hour week, the department produced 1,728 units of ‘MEX’ despite 5% of the time paid was lost due to an abnormal reason. The hourly wage rates actually paid were Rs. 8.40, Rs. 8 and Rs. 8.70 respectively to 40, 30 and 80 workers.
Compute relevant variances.
Solution
[LCV = ; LRPV = ; LEV/LUV = ; LITV = –
LMV/LGCV = 0 ;LYV/LSUV = ;]
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| 03. |
Using the following information, calculate labour variances:
Gross direct wages = Rs. 36,000
Standard hours produced = 1,600
Standard rate per hour = Rs. 28
Actual hours paid = 1,200 hours, out of which hours not worked (abnormal idle time) are 50 hours
Solution
[LCV = ; LRPV = ; LEV/LUV = ; LITV = –
LMV/LGCV = 0 ;LYV/LSUV = ;]
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| 04. |
In a factory section there are 140 workers and the average rate of wages per worker is Re. 7.50 per hour. Standard working hours per week are 42 and the standard performance is 10 units per hour.
During the four weeks in February, wages paid for 80 workers were Re. 8.00 per hour, for 25 workers Re. 7.60 per hour, and for 35 workers Re. 8.40 per hour.
This section did not work for 4 hours due to breakdown of machinery.
Work out the labour variances for the Section for 4 weeks.
Solution
[LCV = ; LRPV = ; LEV/LUV = ; LITV = –
LMV/LGCV = 0 ;LYV/LSUV = ;]
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| 05. |
The following information relates to a manufacturing process of a company:
Number of employees
Weekly hours worked
Standard wage rate
Standard output
|
250
42
5
250
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rupees per hour
units per hour
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During a particular week, four employees were paid at Rs. 4.50 per hour and two employees at Rs. 5.50 per hour, the rest employees were paid at standard rates. Idle time is one hour per employee. Actual output was 10,250 units. Calculate Labour Variances.
Solution
[LCV = ; LRPV = ; LEV/LUV = ; LITV = –
LMV/LGCV = 0 ; LYV/LSUV = ;]
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| 06. |
Given for a factory;
Normal number of workers in the department
Number of hours paid for in a week
Standard rate for wages per hour
Standard output of the department per hour
taking into account normal idle time
|
75
42
Rs. 6
25 units
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In a week, it was ascertained that 1,000 units were produced despite 20% idle time due to power failure and actual rate of wages was Rs. 6.40 per hour.
You are required:
| (i) | To calculate the wages variance, and |
| (ii) | To show its division into: wages rate variance, abnormal idle time variance and labour efficiency variance. |
Solution
[LCV = ; LRPV = ; LEV/LUV = ; LITV = –
LMV/LGCV = 0 ; LYV/LSUV = ;]
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| 07. |
Standard output
Standard time per unit
Standard rate per hour
Actual output
Total actual time taken
Actual rate per hour
The ideal time
|
250 units
4 hrs.
Rs. 13
240 units
1,150 hours
Rs. 15
25 hrs.
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Calculate all possible labour/labor variances
Solution
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| 08. |
From the following information, calculate labour/labor variances
Actual output
No.of employees engaged
Standard daily output per employee
Standard wage per employee
Total No. of days worked
Idle time included in above
Actual wage per employee
|
22,00,000 units
600
125 units
Rs. 10 per day
35 days
1 day
Rs. 75 per day
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Solution
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cost,material,labour,fixed,variable,overhead,sales,profit,variance,reconciliation,standard,actual,formula interpretation,accounting.
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