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Labour rate variance

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Labour rate variance

  • This topic has 0 replies, 1 voice, and was last updated 3 years ago by Aimanz.
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  • August 8, 2022 at 8:46 am #662633
    Aimanz
    Member
    • Topics: 1
    • Replies: 0
    • ☆

    Ring Co’ standard labour cost is based on 2 hours of semi-skilled labour at $20/hr. The labour supervisor arranged for the work to be done in pairs, using one semi skilled and one unskilled worker, each
    working for 1.25 hours
    What is the maximum hourly rate, to the nearest $0.01, that the supervisor can afford to pay the unskilled workers without giving rise to an adverse total labour variance?
    Will you please assist me in this question.I’ll be thankful.

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