Question:
A gang of workers normally consists of 30 men, 15 women and 10 boys. They are paid at standard rates per hour as follows:
Men-Re. 0.80; Women-Re. 0.60 and Boys-Re. 0.40.
In a normal working week of 40 hours, the gang is expected to produce 2,000 units of output.
During the week that ended on 31 December 2004, the gang that consisted of 40 men, 10 women and 5 boys were paid wages per hour @ Re. 0.70, Re. 0.65 and Re. 0.30, respectively. During the week, they produced 1,600 units and 4 hours were lost due to abnormal idle time.
Calculate Labour Variances.