Numerical - Calculate labour cost variance, labour rate variance & labour efficiency variance.

Q.  Given standard time per unit is 80 hours, standard time per hour @ Rs 1 per hour, actual time per unit is 90 hours and actual rate per hour @ Rs 1.10 per hour. Determine labour cost variance, labour rate variance and labour efficiency variance.
- Published on 14 Sep 15

a. Rs 11, Rs 22 and Rs 10 all unfavorable
b. Rs 19, Rs 9 and Rs 10 all favorable
c. Rs 19, Rs 9 and Rs 10 all unfavorable
d. Rs 11, Rs 22 and Rs 10 all favorable

ANSWER: Rs 19, Rs 9 and Rs 10 all unfavorable

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