02. 
From the following data, Calculate labour mix variance or gang composition variance.
Standard labour
120 Skilled workers @ Rs. 4,800 per month
240 Semi – skilled workers @ Rs. 2,600 per month
Actual Labour
138 Skilled workers @ Rs. 4,750 per month
344 Semi – skilled workers @ Rs. 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 = ;]

03. 
The standard labour mix for producing 1,000 units of product is:
150 men of Grade A for 6 hours. i.e., 900 hrs. @ Rs. 10 p.h.
125 men of Grade B for 8 hours i.e., 1,000 hrs @ Rs. 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 @ Rs. 10.20 p.h.
10,980 hours of Grade B @ Rs. 7.80 p.h.
Calculate Labor Variances.
Solution
[LCV = ; LRPV = ; LEV/LUV = ; LITV = –
LMV/LGCV = 0 ;LYV/LSUV = ;]
