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Labor rate variance is the difference between the actual labor rate and the applied overhead rate (standard rate multiplied by the number of actual hours worked). Consider this and respond to the following: The concept of labor rate variance and its application are accurately identified and explained with pertinent examples. Direct labor variance is the difference between the standard cost and the actual cost of You May Also Find These Documents Helpful
Popular EssaysWho is responsible for labor rate variance?The human resource department is the one responsible for the labor rate variance. Labor variance can be defined as where actuals cost of production is different from the labor cost that had been budgeted for.
What exactly does labor rate variance reflect?Labor rate variance is the difference between the expected cost of labor and the actual cost of labor. This variance occurs because of differences in standard versus actual rates. Variances can either be favorable or unfavorable. If a variance is unfavorable, it means that labor costs were more expensive than expected.
What do you mean by labor variance?A labor variance arises when the actual cost associated with a labor activity varies (either better or worse) from the expected amount. The expected amount is typically a budgeted or standard amount. The labor variance concept is most commonly used in the production area, where it is called a direct labor variance.
What department or persons are usually responsible for a direct labor rate variance what department is usually responsible for a direct labor efficiency variance explain?Generally, the production department is responsible for direct labor efficiency variance.
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