Question
Standard hours for actual production = 5,000 hours;
Actual hours worked = 5,500; Std rate per hour = ₹80. Calculate Labour Efficiency Variance.Solution
• LEV = (Std hours – Actual hours) × Std rate = (5,000 – 5,500) × 80 = –₹40,000 = ₹40,000 Adverse.
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