From the following data, calculate labour variances; The budgeted labour force for producing product A is:

25 Semi-skilled workers @ 7.50 per hour for 50 hours
15 Skilled workers @ 8.25 per hour for 50 hours

The actual labour force employed for producing A is:

28 Semi-skilled workers @ 7.00 per hour for 50 hours.
14 Skilled workers @ 8.50 per hour for 40 hours

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

A contract job is scheduled to be completed in 40 weeks with a labour complement of 80 skilled operatives, 50 semi-skilled operatives and 70 unskilled operatives. The standard weekly wages of each type of operatives are – skilled 250 semi- skilled 156 and unskilled 124. The work is actually completed in 42 weeks with a labour force of 75 skilled, 50 semi-skilled and 80 unskilled operatives and the actual weekly wages rates average 265 for skilled: 140 for semi-skilled and 120 for unskilled labour. Analyse the variances in the labour cost due to various reasons.

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

The standard labour force of Mahan Plastics Ltd. is as under:

60 skilled men at 5.00 Paise per hour for 25 hours	7,500
80 semi – skilled men at 3.50 per hour for 40 hours	11,200
	18,700

75 skilled men at 6.00 per hour for 24 hours	10,800
100 semi – skilled men at 3.40 per hour for 42 hours	14,280
	25,080

Analyse the Labour Variances.

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

The following data have been taken from the cost records of EMILY Ltd.

Standard	Actual
Grade A 100 workers @ 12 p.h.	Grade A 122 workers @ 12.50 p.h.
Grade B 75 workers @ 10 p.h.	Grade B 88 workers @ 9.50 p.h.
Budgeted hours 80 per worker	Actual Hours 80 per worker
Standard yield 4,000 units	Actual production 4,100 units

Calculate all labour variances.

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

Given the following particulars, analyse the labour variance.

Standard				Actual
Labour	No.of persons	Rate	Hours worked	Labour	No. of persons	Rate	Hours worked
Grade I	90	10	100	Grade I	85	12	120
Grade II	55	8	100	Grade II	55	7.50	120
Grade III	40	6	100	Grade III	50	7	120
Standard rate production:200 units				Actual production:190 units

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

Calculate variances from the following data:

	Standard		Actual
Number of men employed Output in units Number of working days in a month Average wages per man per month	80 4,000 25 1,200		90 4,180 24 1,140

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

A contract job is scheduled to be completed in 40 weeks with following labour force:

Skilled	140	weekly wage		500
Semi –skilled	70	"	"	450
Unskilled	90	"	"	350

The work is actually completed in 44 weeks with the following labour force

Skilled	150	weekly wage		515
Semi –skilled	80	"	"	440
Unskilled	70	"	"	365

Analyse variances in labour cost.

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

Standard labour hours and rate for production of Article SARD are given below:-

	Hrs	Rate ()	Total ()
Skilled Workers	8	15 per hour	120
Semi-Skilled Workers	7	12 per hour	84
Unskilled Workers	5	8 per hour	40
			244

Actual data

		Rate Per hour ()	Total ()
Articles Produced	1,000 units
Skilled Workers	7,800 hrs	16	1,24,800
Unskilled Workers	5,200 hrs	8.50	44,200
Semi-Skilled Workers	7,250 hrs	13.40	97,150
			2,66,150

Calculate all possible labour/labor variances.

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

The details regarding the composition and the weekly wage rates of labour force engaged on a job scheduled to be completed in 50 weeks are as follows:

Category of Worker	Standard No. of Labour	Weekly Wage Rate per laborer	Actual No. of Labor	Weekly Wage Rate per labourer
Skilled	70	250	70	260
Semi-Skilled	55	225	60	225
Unskilled	75	150	80	140

The work is actually completed in 60 weeks. Calculate the various labour variances.

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

The standard of labour mix for producing an article in a particular week is:
45 men @ 12 per hour for 50 hours
25 women @ 10 per hour for 40 hours
15 boys @ 8 per hour for 50 hours.

But actual labour force used during that week was:

42 men @ 13 per hour for 55 hours.
20 women @ 11 per hour for 40 hours.
8 women @ 10 per hour for 40 hours.
13 boys @ 8.25 per hour for 60 hours.
You are required to calculate all possible labour/labor variances:

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

The budgeted labour force for producing 1,000 articles ‘X’ is

		Total standard Hours		Total standard Cost ()
40 men	@ 5 per hour for 50hrs	2,000		10,000
25 women	@ 3 per hour for 40 hrs	1,000		3,000
20 boys	@ 2.50 per hour for 25 hrs	500		1,250
		3,500		14,250

The actual data and related work force are as follows:
Articles produced, 1,000

		Total actual Hours		Total Cost ()
55 men	@ 6 per hour for 50 hrs	2,750		16,500
20 women	@ 2.50 per hour for 30 hrs	600		1,500
10 boys	@ 3 per hour for 15 hrs	150		450
		3,500		18,450

Calculate all possible Labour/Labor variances.

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

Standard
For 100 hours		Grade A : 80 workers @ 13 per hour Grade B : 70 workers @ 11 per hour

Actual
For 100 hours		Grade A : 78 workers @ 12.50 per hour Grade B : 72 workers @ 10 per hour

Calculate all possible Labour/Labor Variances

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

The standard labour component and the actual labour component engaged in a week for a job areas under:

		Skilled workers	Semi-skilled workers	Unskilled workers
(a)	Standard number of workers in the gang	28	12	10
(b)	Standard wage rate per hour ()	15	12	10
(c)	Actual number of workers employed in the gang during the week	25	14	11
(d)	Actual wage rate per hour ()	16	12	9

During the 40-hours working week, the gang produced 1,800 standard labour hours of work.
Calculate the different labour variances.

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

The original standard rate of pay in a factory was 8 per hour. Due to settlement with trade unions, this rate of pay per hour is increased by 15%. During a particular period, 8,000 actual hours were worked whereas work done was equivalent to 6,400 hours. The actual labour cost was 76,800. Calculate labour variances.

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

A large manufacturing company with a diverse range of products is developing the use of standard costing throughout its divisions. A full standard costing system has already been implemented in Division A, including the sue of mix and yield material variances, and attention has now turned to Division B where the main problem concerns labour.
Division B makes highly complex work stations which incorporate material handing, automatic controls and robotics. Manufacture is a team effort and the team specified for work station 26 comprises:
2 supervisors paid 8 per hour
10 fitters paid 6 per hour
6 electricians paid 6 per hour.
2 electronics engineers paid 7 per hour
4 labourers paid 4 per hour
Output is measured in standard hours and 90 standard hours are expected for every 100 clock hours. During a period the following data were recorded.

	Actual hours		Actual pay
Supervisors	170		1,394
Fitters	820		4,920
Electricians	420		2,562
Electronics engineers	230		1,725
Labours	280		1,120
Total	1,920		11,721

1,650 standard hours were produced.
The factory director of Division B is anxious to gain the maximum information possible from the standard costing system. He sees no reason why the normal labour efficiency variance could not be divided into sub-variances in order to show separately the effects of non-standard team composition and team productivity in a similar fashion to the material usage variance which can be sub-divided into mix and yield.
You are required to calculate labour variances.

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