Standard time allowed to complete one unit is 2 hours. A worker during a week (48 hours) completed 20 units and drawn a salary of Rs. 6000. The standard rate per day of 8 hours shift is Rs. 1000. Which one of the following is true? A.Labour rate variance is Rs. 2000 favorable B.Labour rate variance is Rs. 2000 unfavorable C.Labour Efficiency variance is Rs. 1000 unfavorable D.Labour Efficiency variance is Rs. 1000 favorable
Standard time allowed to complete one unit is 2 hours. A worker during a week (48 hours) completed 20 units and drawn a salary of Rs. 6000. The standard rate per day of 8 hours shift is Rs. 1000. Which one of the following is true? A.Labour rate variance is Rs. 2000 favorable B.Labour rate variance is Rs. 2000 unfavorable C.Labour Efficiency variance is Rs. 1000 unfavorable D.Labour Efficiency variance is Rs. 1000 favorable
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Standard time allowed to complete one unit is 2 hours. A worker during a week (48 hours) completed 20 units and drawn a salary of Rs. 6000. The standard rate per day of 8 hours shift is Rs. 1000. Which one of the following is true?
A.Labour rate variance is Rs. 2000 favorable
B.Labour rate variance is Rs. 2000 unfavorable
C.Labour Efficiency variance is Rs. 1000 unfavorable
D.Labour Efficiency variance is Rs. 1000 favorable
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