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Standard: 40 men labour at 25 per hour 20 women labour at 20 per hour Standard working week: 8 hours per day for 5 days. Actual: 35 men labour at 26 per hour 28 women labour at 19 per hour Compute labour rate variance.?
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Standard: 40 men labour at 25 per hour 20 women labour at 20 per hour ...
Labour Rate Variance Calculation:
To calculate the labour rate variance, we need to compare the standard rate per hour with the actual rate per hour for both men and women.
1. Standard Rate Calculation:
- Number of men: 40
- Rate per hour for men: $25
- Number of hours in a standard working week: 8 hours per day * 5 days = 40 hours
- Standard wage for men in a week: 40 men * 40 hours * $25 = $40,000
- Number of women: 20
- Rate per hour for women: $20
- Standard wage for women in a week: 20 women * 40 hours * $20 = $16,000
2. Actual Rate Calculation:
- Number of men: 35
- Rate per hour for men: $26
- Actual wage for men in a week: 35 men * 40 hours * $26 = $36,400
- Number of women: 28
- Rate per hour for women: $19
- Actual wage for women in a week: 28 women * 40 hours * $19 = $21,280
3. Labour Rate Variance Calculation:
- Labour rate variance for men: Standard wage for men - Actual wage for men = $40,000 - $36,400 = $3,600 (Favorable)
- Labour rate variance for women: Standard wage for women - Actual wage for women = $16,000 - $21,280 = -$5,280 (Unfavorable)
Explanation:
Labour rate variance measures the difference between the standard wage rate and the actual wage rate. It helps in evaluating the efficiency and effectiveness of the labor force in terms of their wages.
In this case, the labor rate variance is calculated separately for men and women.
For men, the standard wage rate is $25 per hour, and the actual wage rate is $26 per hour. The labor rate variance is favorable, indicating that the actual wage rate for men is lower than the standard rate. This could be due to various factors such as negotiation, changes in market conditions, or cost-saving measures.
For women, the standard wage rate is $20 per hour, and the actual wage rate is $19 per hour. The labor rate variance is unfavorable, indicating that the actual wage rate for women is higher than the standard rate. This could be due to factors such as increased demand for female labor, changes in market conditions, or adjustments in the wage structure.
Overall, the labor rate variance provides insights into the cost control efforts and effectiveness of labor utilization in an organization. It helps management to identify areas where improvements can be made to achieve cost efficiencies and optimize labor utilization.
To calculate the labour rate variance, we need to compare the standard rate per hour with the actual rate per hour for both men and women.
1. Standard Rate Calculation:
- Number of men: 40
- Rate per hour for men: $25
- Number of hours in a standard working week: 8 hours per day * 5 days = 40 hours
- Standard wage for men in a week: 40 men * 40 hours * $25 = $40,000
- Number of women: 20
- Rate per hour for women: $20
- Standard wage for women in a week: 20 women * 40 hours * $20 = $16,000
2. Actual Rate Calculation:
- Number of men: 35
- Rate per hour for men: $26
- Actual wage for men in a week: 35 men * 40 hours * $26 = $36,400
- Number of women: 28
- Rate per hour for women: $19
- Actual wage for women in a week: 28 women * 40 hours * $19 = $21,280
3. Labour Rate Variance Calculation:
- Labour rate variance for men: Standard wage for men - Actual wage for men = $40,000 - $36,400 = $3,600 (Favorable)
- Labour rate variance for women: Standard wage for women - Actual wage for women = $16,000 - $21,280 = -$5,280 (Unfavorable)
Explanation:
Labour rate variance measures the difference between the standard wage rate and the actual wage rate. It helps in evaluating the efficiency and effectiveness of the labor force in terms of their wages.
In this case, the labor rate variance is calculated separately for men and women.
For men, the standard wage rate is $25 per hour, and the actual wage rate is $26 per hour. The labor rate variance is favorable, indicating that the actual wage rate for men is lower than the standard rate. This could be due to various factors such as negotiation, changes in market conditions, or cost-saving measures.
For women, the standard wage rate is $20 per hour, and the actual wage rate is $19 per hour. The labor rate variance is unfavorable, indicating that the actual wage rate for women is higher than the standard rate. This could be due to factors such as increased demand for female labor, changes in market conditions, or adjustments in the wage structure.
Overall, the labor rate variance provides insights into the cost control efforts and effectiveness of labor utilization in an organization. It helps management to identify areas where improvements can be made to achieve cost efficiencies and optimize labor utilization.
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Standard: 40 men labour at 25 per hour 20 women labour at 20 per hour Standard working week: 8 hours per day for 5 days. Actual: 35 men labour at 26 per hour 28 women labour at 19 per hour Compute labour rate variance.?
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Standard: 40 men labour at 25 per hour 20 women labour at 20 per hour Standard working week: 8 hours per day for 5 days. Actual: 35 men labour at 26 per hour 28 women labour at 19 per hour Compute labour rate variance.? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about Standard: 40 men labour at 25 per hour 20 women labour at 20 per hour Standard working week: 8 hours per day for 5 days. Actual: 35 men labour at 26 per hour 28 women labour at 19 per hour Compute labour rate variance.? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Standard: 40 men labour at 25 per hour 20 women labour at 20 per hour Standard working week: 8 hours per day for 5 days. Actual: 35 men labour at 26 per hour 28 women labour at 19 per hour Compute labour rate variance.?.
Standard: 40 men labour at 25 per hour 20 women labour at 20 per hour Standard working week: 8 hours per day for 5 days. Actual: 35 men labour at 26 per hour 28 women labour at 19 per hour Compute labour rate variance.? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about Standard: 40 men labour at 25 per hour 20 women labour at 20 per hour Standard working week: 8 hours per day for 5 days. Actual: 35 men labour at 26 per hour 28 women labour at 19 per hour Compute labour rate variance.? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Standard: 40 men labour at 25 per hour 20 women labour at 20 per hour Standard working week: 8 hours per day for 5 days. Actual: 35 men labour at 26 per hour 28 women labour at 19 per hour Compute labour rate variance.?.
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