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The following was the composition of a gang of workers in a factory during a particular month, in one of the production departments. The

 

The following was the composition of a gang of workers in a factory during a particular month, in one of the production departments. The standard composition of workers and wage rates per hour were as follows. Skilled: Two workers at a standard rate of OMR 20 per hour each Semi-Skilled: Four workers at a standard rate of OMR 12 per hour each Unskilled: Four workers at a standard rate of OMR 8 per hour each. The standard output of the gang was four units per hour of the product. During the month in question, however the actual composition of the gang and hourly rates paid were as under Skilled: 2 workers @ OMR 20 per hour Semi-Skilled: 3 workers @ OMR 14 per hour Un-skilled: 5 workers @ OMR 10 per hour The gang was engaged for 200 hours during the month, which included 12 hours when no production was possible due to the machine breakdown. 810 units of the product were recorded as output of the gang during the month. Calculate Labour Variances.

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