Two/More types of Labour/Labor :: Revision of Standards : Problems and Solutions
|Category||Original Standard||Revised Standard||Actual|
|Standard Output : 100 units||Actual Output : 80 units|
[TLCV = ; TLRPV = ; TLEV/LUV = ; TLITV = – TLMV/LGCV = 0 ; TLYV/LSUV = ;]
120 Skilled workers @ 4,800 per month
240 Semi – skilled workers @ 2,600 per month
138 Skilled workers @ 4,750 per month
344 Semi – skilled workers @ 2,825 per month
Due to shortage of skilled workers, it was decided to reduce the number of skilled workers by 10% and increase that of semi – skilled workers @ 5%
[LCV = ; LRPV = ; LEV/LUV = ; LITV = – LMV/LGCV = 0 ; LYV/LSUV = ;]
150 men of Grade A for 6 hours. i.e., 900 hrs. @ 10 p.h.
125 men of Grade B for 8 hours i.e., 1,000 hrs @ 8 p.h.
Actual production is 10,000 units. But due to shortage of Grade A labour, the standard mix had to be revised as 8,200 hrs of Grade A and 10,800 hrs of Grade B for producing 10,000 units.
Actual hours paid for were:
8,400 hours of Grade A @ 10.20 p.h.
10,980 hours of Grade B @ 7.80 p.h.
Calculate Labor Variances.
[LCV = ; LRPV = ; LEV/LUV = ; LITV = – LMV/LGCV = 0 ;LYV/LSUV = ;]