Numerical - Calculate labour cost variance

Q.  XYZ factory working for 50 hours per week employs hundred workers on a job work. The standard output is 200 units per gang hour and standard rate is Rs 1 per hour. During a week in June, five employees were paid @ Rs 1.20 per hour and ten employees were paid @ 80 paise per hour. Rest of the employees were paid @ standard hour rate. The actual number of units produced was 10,200. Determine labour cost variance
- Published on 14 Sep 15

a. Rs 100 favorable
b. Rs 150 unfavorable
c. Rs 150 favorable
d. Rs 100 unfavorable

ANSWER: Rs 150 favorable

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