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Typical Causes of Labour Variances
Labour Rate Variances
a) Higher rates being paid than planned because of wage raise awards.
b) Lower or Higher grade of workers being utilized than planned.
c) Payment of unplanned overtime or bonus.
Labour Efficiency Variances
a) Use of incorrect grade of labour as like poorly trained personnel.
b) Poor workshop organization or supervision.
c) Incorrect materials or machine problems.
d) Employ of better quality labour
e) Decrease labour or increase labour efficiency.
A company has an authorized share capital of 250 million divided into 1,500,000 ordinary shares of sh.100 each and 1,000,000 preference shares of sh.100 each. 1,000,000 ordinary sh
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