Q.

XYZ factory working for 50 hours per week employs hundred workers on a job work. The standard output is 200 units per gang hour and standard rate is Rs 1 per hour. During a week in June, five employees were paid @ Rs 1.20 per hour and ten employees were paid @ 80 paise per hour. Rest of the employees were paid @ standard hour rate. The actual number of units produced was 10,200. Determine labour cost variance

A. Rs 100 favourable
B. Rs 150 unfavourable
C. Rs 150 favourable
D. Rs 100 unfavourable
Answer» C. Rs 150 favourable

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Management Accounting

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