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 = ;]

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

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 = ;]