A product is expected to take 2 hours per unit and the labour is budgeted at £9 per hour. The original budget was to produce 8,000 but 9,000 were actually produced in 18,750 hours, while the wage bill was £169,000. What were the labour rate variance and the labour efficiency variance?

A product is expected to take 2 hours per unit and the labour is budgeted at £9 per hour. The original budget was to produce 8,000 but 9,000 were actually produced in 18,750 hours, while the wage bill was £169,000. What were the labour rate variance and the labour efficiency variance?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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What were the labour rate variance and the labour efficiency variance?

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