The Standard Labour Cost per unit of product ‘Y’ is:

Grade I – 5 hours	5.00
Grade II – 8 hours	4.00
Grade III – 10 hours	4.00
	13.00

For 500 units of production, following wage payments were made:

Grade I – 2,400 hours	2,640
Grade II – 6,000 hours	2,700	(1,000 hrs idle)
Grade III – 10 hours	2,940	(500 hrs idle)

Reconcile the Standard Labour Cost with Actual Labour Cost for 500 units of production of ‘Y’ .

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