Question

From the following records of Bonuscrew Ltd., you are
required to compute the material and labour variances :
1 tonne of material input yields a standard output of 1 lakh
units.
Number of employees is 200.
The standard wage rate per employee per day is Rs. 6.
Actual quantity of material issued by production department
10 tonnes.
Actual price of material is Rs. 21 per kg.
Actual output is 9 lakh units.
Actual wage rate per day Rs. 6.50.
Standard daily output per employee is 100 units.
Total number of days worked is 50.
Idle time paid for and included above is half day.
can some one solve this ​

Answer 1

Answer:

Total labor variance 11000

Explanation:

Idle time = 200 × 1/2 day men days

Actual time attended = 200 × 50 days = 10,000 men days

Actual time worked = 10,000 - 100 = 9900 men days

Actual production = 9,00,000 units

Standard requirement

Material = 9,00,000 / 1,00,000 = 9 tons

Labour = 9,00,000 / 100 = 9000 men days

Material price Variance = ( standard price - Actual price) × Actual quantity

= (20 -21) × 10,000

= 10000 (A)

Labour rate variance

( standard price - Actual price) × Actual men's days attended

( 6- 6.50)  × 10,000

= 5000(A)

Answer 2

Answer:

The correct solution for this problem is 5000 Labour rate variance.

Explanation:

Total labor variance 11000

Idle time = 200 × $\frac{1}{2}$ day men days

Actual time attended = 200 × 50 days = 10000 men days

Actual time worked = 10000 - 100 = 9900 men days

Actual production = 900000 units

Standard requirement which is knows to us:

Material =  $\frac{900000}{100000}$ = 9 tons

Labour = $\frac{900000}{100}$ = 9000 men days

Material price Variance = (standard price - Actual price) × Actual quantity

= (20 -21) × 10000

= 10000 (A)

Labour rate variance = (standard price - Actual price) × Actual men's days attended

(6 - 6.50)  × 10000

= 5000(A)