| Originally posted by :Ganga |
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hi all,
i have doubt in this question...plz help me out... gimme the complete solution..
the standard output of product EXE is 25 units per hours in a manufacturing department of a company employing 100 workers. the standard wage rate per labour hour is 6 rs. in a 2 hour week, the department produced 1040 units of EXE despite of 5 % of the time paid was lost due to an abnormal reason. the hourly wage rate paid were 6.2, 6, 5.7 repectiveley to 10, 30 & 60 of the workers. calculate variances?
thanks |
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Ok let me reveal the answer anyways:
This one is a CA Inter May 97 attempt one.I was a student roughly around that time!
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Presentation must be made in the exam thus:
Working Note: CALCULATION OF STD NON-HOURS:
When 100 workers work for 1 hour--The std.output is 25 units.
Std man hour per unit = 100 hours/ 25 units = 4 hours
CALCULATION FOR STD.MAN HOURS FOR ACTUAL OUTPUT:
1040 Units x 4 hours= 4160
Then draw a std data and actual data table that I leave it to you
Then you get the std.labor cost as Rs.24,960 and Actual labour cost as Rs.24,528, thus labour cost variance which is a difference of these 2 will come to Rs.432 F
Calculate labour rate variance which comes to 672F{(Std rate- Actual rate) x Actual hours}You must do this cumulatively for 84A+NIL+756F to get 672F.WORK IT OUT YOURSELF.
Then labour efficiency variance = (std man hours- actual production hours) x std.rate
= (4160-3990) x 6 = 1020 F (You get 3990 from the std and actual data table, which you should draw)
Labour idle time variance= idle time hours x std rate = 210 x 6 (you get 210 again from the std and actual data table) = 1260 A(Idle time variance is adverse mind you)
There you have the solution viola!I dont have the suggested answers or compiler to check my worked out solution since I had the scanner with me here which I brought accidentally with other books, I could check the problem and the final answers.They tally.So, I have not lost my std.costing touch as yet! Ha! I had some time and mood to solve this question.Also when typing out any question in a public forum like this make sure you type all facts properly so that other students can help you out easily.I might not help and most probably will not be able to help with all student technical queries like this but many students currently doing the course might be able to help you out.
Please check for worked out solutions from compiler.IT IS ALWAYS A GOOD IDEA TO HAVE A COMPILER IN HAND and check for solutions and answers incase one does not get the problem.Most of these coaching centres take problems out of past exam questions and so high possibility would be to find the same question in it.
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