Find the labour efficiency variance from the following information : Actual hours worked : 5,600 Actual wages paid : ₹7,840 Standard rate @ ₹2 per hour Standard hours produced : 4,000
CS Executive · Cost and Management Accounting · PYQS · December 2014
Find the labour efficiency variance from the following information : Actual hours worked : 5,600 Actual wages paid : ₹7,840 Standard rate @ ₹2 per hour Standard hours produced : 4,000
Answer & Explanation:
Correct Answer: Option (A)
Correct answer: (A) ₹3,200 (A). Labour efficiency variance = (4,000−5,600)×2 = 3,200 adverse.
Topics: Standard Costing
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