Question:
The following was the composition of a gang of workers in a factory during a particular month, in one of the production departments. The standard composition of workers and wage rates per hour were as follows.
Skilled: Two workers at a standard rate of Rs.20 per hour each Semi-Skilled: Four workers at a standard rate of Rs.12 per hour each Unskilled: Four workers at a standard rate of Rs.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
Skilled: 2 workers @ Rs.20 per hour
Semi-Skilled: 3 workers @ Rs.14 per hour
Un-skilled: 5 workers @ Rs.10 per hour
The gang was engaged for 200 hours during the month, which included 12 hours when no production was possible due to the machine breakdown. 810 units of the product was recorded as output of the gang during the month.
Calculate various labour variances.