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A company manufactures a particular product using two types of labour namely skilled and unskilled. The standard labour cost for producing one unit as under

A company manufactures a particular product using two types of labour namely skilled and unskilled. The standard labour cost for producing one unit as under :

Type of Workers

Labour Hours

Labour Rate / Hr

Skilled

30

RO 3.5

Unskilled

20

RO 3

During a period, the company manufactured 100 units of the product and the labour cost incurred was as follows

Type of Workers

Labour Hours

Labour Rate / Hr

Skilled

2800

RO 2.5

Unskilled

2200

RO 3.75

The company has lost 50 hours of skilled and unskilled labour hours due to machine breakdown.

What is the standard hours of Skilled labor used to produce 100 units by the company during the period?

a.None of the given options

b.300 Hours

c.30,000 Hours

d.30 Hours

What is the Labor Cost Variance for Skilled labor?

a.RO. 3500 (Favorable)

b.RO. 3500(Adverse)

c.RO. 4500 (Favorable)

d.RO. 1250 (Favorable)

What is the Labor Rate Variance for Skilled labor?

a.RO. 3,600 (Adverse)

b.RO. 1,650 (Adverse)

c.RO. 2,800 (Favorable)

d.RO. 2,500 (Favorable)

What is the total Labor Cost Variance?

a.RO. 2,750 (Adverse)

b.RO. 1,250 (Favorable)

c.RO. 1,250 (Adverse)

d.RO. 3,500 (Favorable)

What is the total Labor Rate Variance?

a.RO. 1,250 (Adverse)

b.RO. 1,150 (Favorable)

c.RO. 2,750 (Adverse)

d.RO. 1,250 (Favorable)

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