REQUIRED

Calculate the following variances from the information provided below. In each case also state whether the

variance is favourable or unfavourable.

$1\mathrm{.}4\mathrm{.}1$ Labour rate variance

$1\mathrm{.}4\mathrm{.}2$ Labour efficiency variance

$1\mathrm{.}4\mathrm{.}3$ Total labour variance without using the labour rate variance and labour efficiency

variance.

INFORMATION

Raleigh Enterprises manufactures bicycles. During the year $3000$ bicycles were produced. The actual labour

time was $28000$ hours at a total cost of R$2660000.$

Raleigh Enterprises had the following labour standard for the $4000$ bicycles that it expected to produce during

the year:

$9$ hours per unit at R$90$ per hour