Q. A company's direct labour standards for a given operation and the actual results for the current period are provided below: Standard rates: Level One $20 per hour Level Two $15 per hour Time to produce one unit: Two (2) Level One workers at 15-minutes each Three (3) Level Two workers at 10 minutes each Actual Results: Units produced: 10,000 Labour used: 4,000 hours of Level One workers at $25 per hour 6,800 hours of Level Two workers at $15 per hour Required: (Be sure to indicate whether the variance is favourable or unfavourable)
a. Calculate the labour price (rate) variances for each worker level. b. Compute the labour efficiency variances for each worker level. c. Compute the labour mix variances for each worker level.