The maintenance department of the Royal Air Force Club calculate that the standard direct labour cost of painting 10 square meters of the building's external walls of is 1 hour of labour at £16 per hour. During the 12-week summer season, they painted 20,000 square meters and the direct labour cost was £29,250 for 2,250 hours of work. What is the Total Direct Labour Cost Variance?

Question

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The standard cost for painting 20,000 square meters is calculated based on the standard cost of painting 10 square meters, which is 1 hour at £16. Therefore, for 20,000 square meters, the standard hours required would be 20,000 / 10 = 2,000 hours. The standard cost for these hours would be 2,000 hours * £16/hour = £32,000. The actual cost was £29,250. Therefore, the Total Direct Labour Cost Variance is £32,000 - £29,250 = £2,750, which is favorable since the actual cost was less than the standard cost.

The Maintenance Department of the Royal Air Force Club Calculate