Labour Rate Variance (LRV) (SR - AR) X AH
(3.00 - 3.10) x 10,500
1,050 (A)
VERIFICATION
LCV = LEV + LRV (150) = (1,050) + 900
18.2 Sub-Variances
ustration 13 :
Gang of workers normally consists of 30 men, 15 women and 10 boys. They are paid at Standard
tes per hour as, Man 80.00, Woman * 60.00 and Boy 40.00. In a normal working of a week of
hours, the Gang is expected to produce 2000 units of output.
uring the week ended 31st December, 2011, the gang consisted of 40 men, 10 women and 5 boys.
he actual wages paid per hour were Man 70.00, Woman * 65.00 and Boy 30.00. Actual units
roduced by the Gang 1,600 units.
alculate :
Labour Cost Variance
Labour Rate Variance
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this is not a math
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this is english
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