# Two/More types of Labour/Labor :: Revision of Standards : Problems and Solutions

# Problem 1

From the following data calculate the different Direct Labour Variances:

Category | Original Standard | Revised Standard | Actual | ||||||||
---|---|---|---|---|---|---|---|---|---|---|---|

Hrs | Rate | Amt | Hrs | Rate | Amt | Hrs | Rate | Amt | |||

Skilled | 60 | 15 | 900 | 55 | 15 | 825 | 50 | 14 | 700 | ||

Semi-skilled | 40 | 12 | 480 | 45 | 12 | 540 | 50 | 13 | 650 | ||

Total | 100 | 1,380 | 100 | 1,365 | 100 | 1,350 |

Standard Output : 100 units | Actual Output : 80 units |

**Solution**

[TLCV = ; TLRPV = ; TLEV/LUV = ; TLITV = – TLMV/LGCV = 0 ; TLYV/LSUV = ;]

# Problem 2

From the following data, Calculate labour mix variance or gang composition variance.

120 Skilled workers @ 4,800 per month

240 Semi – skilled workers @ 2,600 per month

138 Skilled workers @ 4,750 per month

344 Semi – skilled workers @ 2,825 per month

Due to shortage of skilled workers, it was decided to reduce the number of skilled workers by 10% and increase that of semi – skilled workers @ 5%

**Standard labour**120 Skilled workers @ 4,800 per month

240 Semi – skilled workers @ 2,600 per month

**Actual Labour**138 Skilled workers @ 4,750 per month

344 Semi – skilled workers @ 2,825 per month

Due to shortage of skilled workers, it was decided to reduce the number of skilled workers by 10% and increase that of semi – skilled workers @ 5%

**Solution**

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

# Problem 3

The standard labour mix for producing 1,000 units of product is:

150 men of Grade A for 6 hours. i.e., 900 hrs. @ 10 p.h.

125 men of Grade B for 8 hours i.e., 1,000 hrs @ 8 p.h.

Actual production is 10,000 units. But due to shortage of Grade A labour, the standard mix had to be revised as 8,200 hrs of Grade A and 10,800 hrs of Grade B for producing 10,000 units.

Actual hours paid for were:

8,400 hours of Grade A @ 10.20 p.h.

10,980 hours of Grade B @ 7.80 p.h.

Calculate Labor Variances.

**Solution**

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

# Practice Problems

Author : The Edifier