Labour Efficiency variance

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April 24, 2015 at 12:55 pm #242454
Ursula
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Please kindly help me solve this question
Y plc produces widgets
Each widget should take 0.5hrs to make. The standard rate to pay is $10 per hour. Idle time is expected to be 5% of the hours paid.
They actually produced 10800,they paid $50000 for 6000hrs of which 330hrs are idle.
What is the labour efficiency variance?
April 24, 2015 at 5:33 pm #242490
John Moffat
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I will happily help you, but first tell me whether you have watched the free lecture on idle time variances (because it is in that lecture that I go through a very similar example) ?
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