# Two or More Types Labour/Labor :: Abnormal Idle Time : Problems and Solutions

# Problem 1

In a certain week, the gang consisted of 55 men, 40 women and 25 boys. Actual wages were paid at the rates of 8, 6.50 and 6 respectively. Two hours per week were lost due to abnormal idle time and 1,350 units of output were produced.

Calculate various labour/labor variances

**Solution**

[LCV = ; LRPV = ; LEV/LUV = ; LITV = – LMV/LGCV = 0; LYV/LSUV = ;]

# Problem 2

Standard composition | Standard Hourly Rate |
---|---|

40 Men | 6.00 |

25 Women | 4.00 |

25 Boys | 3.00 |

In a particular week, gang consisted of 33 men, 34 women and 23 boys and actual wages were paid as follows:

Men @ 6.50 per hour

Women @ 4

Boys @ 2.75 per hour

Two hours were lost in the week due to abnormal idle time. Actual production was 960 units in the week.

Find out all possible labour/labor variances

**Solution**

[LCV = ; LRPV = ; LEV/LUV = ; LITV = – LMV/LGCV = 0 ;LYV/LSUV = ;]

# Problem 3

Skilled | : | Two workers at a standard rate of 20 per hour each. |

Semi-skilled: | : | Four workers at a standard rate of 12 per hour each. |

Unskilled: | : | Four workers at a standard rate of 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:

Nature of workers | No. of workers | Wage rate paid per worker per hour engaged | ||
---|---|---|---|---|

Skilled | 2 | 20 | ||

Semi-skilled | 3 | 14 | ||

Unskilled | 5 | 10 |

You are required

(a) to compute the standard unit labour cost of the product:

(b) to compute the total variance in labour cost during the month; and

(c) analyse the variances in (b) above into sub-variances and reconcile.

**Solution**

[LCV = ; LRPV = ; LEV/LUV = ; LITV = – LMV/LGCV = 0 ;LYV/LSUV = ;]

# Problem 4

Male | 8,000 hrs | @ 5 p.h. | = | 40,000 |

Female | 8,000 hrs | @ 4 p.h. | = | 32,000 |

16,000 hrs | = | 72,000 |

Male | 9,400 hrs | @ 60 paise p.h. | = | 5,580 |

Female | 7,000 hrs | @ 35 paise p.h. | = | 2,450 |

16,300 hrs | = | 8,030 |

Calculate Labour/Labor Variances

**Solution**

[LCV = ; LRPV = ; LEV/LUV = ; LITV = – LMV/LGCV = 0 ;LYV/LSUV = ;]

# Problem 5

Standard Wages:

Grade X : 90 labourers at 2 per hour.

Grade Y : 60 labourers at 3 per hour.

Actual Wages :

Grade X : 80 labourers at 2.50 per hour.

Grade Y : 70 labourers at 2.00 per hour.

Budgeted Hours 1,000 : Actual Hours 900

Budgeted Gross Production 5,000 units: Standard Loss 20% ; actual loss 900 units.

**Solution**

[LCV = ; LRPV = ; LEV/LUV = ; LITV = – LMV/LGCV = 0 ;LYV/LSUV = ;]