Direct labour efficiency variances, Cost Accounting

Direct Labour Efficiency Variances

It is the difference between the standard hours allowed for the actual production achieved and the hours actually worked, all valued at THE standard labour rate.  Using an equation, this can be shown as given:

Direct labour Efficiency Variance = (actual labour hours x standard rate) - (standard hour hours x standard rate)

(AHrs x SR) - (SHrs x SR)

Factoring SR out of the equation we obtain

Direct Labour efficiency variance = SR (AHrs - SHrs).

Therefore the direct labour efficiency variance arises because of the actual hours utilized in production varying from the standard hours expected to have been utilized.

Posted Date: 2/7/2013 6:46:30 AM | Location : United States







Related Discussions:- Direct labour efficiency variances, Assignment Help, Ask Question on Direct labour efficiency variances, Get Answer, Expert's Help, Direct labour efficiency variances Discussions

Write discussion on Direct labour efficiency variances
Your posts are moderated
Related Questions
1. A company is considering a project that requires an initial investment of $100 million and will pay $20 million of each of the next 10 years, and nothing thereafter. The company

Your firm is the auditor of Easy Hire Pty Ltd (Easy Hire).the company hires out equipment to industries such as construction, engineering & event management. It has 76 branches nat

1. You are required to download the latest annual report published by one of the following institutions: - Adult Multicultural Education Services - Centre for Adult Education

On May 9th, David paid $34,500 (including sales tax) to purchase a used Audi A8 that he uses 90% of the time for business. No trade-in was involved. David uses the actual operating

DEMERITS OF BREAK EVEN POINT 1. It pays no attention to considerations like effect of government policy changes, changes in the marketing environment etc 2. Fixed cost, enti

Beginning inventory on March 1 consisted of 2,000 units each costing $11.20. During March, the following was purchased for inventory: Date Purchase

USES O F CVP ANALYSIS 1. .It allows preparation of flexible budgets. 2. It provides help in forecasting accurate profit. 3. It aids in formulating price policy. 4

1.    The following table summarizes the short-run production function for your firm. Your product sells for $5 per unit, labor costs $5 per unit, and the rental price of capital i

Tyler's Consulting Company has purchased a new $15,000 copier. This overhead cost will be shared by the purchasing, accounting, and information technology departments since those a

Required Ledgers in Financial System In the financial Systems the Required ledgers are as: The General Ledger Debtors Ledger Creditors Ledger