Direct labour rate variance, Cost Accounting

Direct Labour Rate Variance

It is the difference among the actual direct labour rate and the standard direct labour rate for the total hours worked.

Utilizing an equation, this can be implies as follows as:

Direct labour rate Variance = (Actual labour hours x Actual Rate) - ( Actual Labour Hours x Standard Rate)       

= (AHrs x AR) - (AHrs x SR)

= AHRs (AR - SR).

This is clear from the above equation that the direct labour rate variance arises because of the actual rate paid for the actual labour hours worked differing from the standard rate such was expected to be paid for those labour hours.

Posted Date: 2/7/2013 6:45:19 AM | Location : United States







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

Write discussion on Direct labour rate variance
Your posts are moderated
Related Questions
By the discussions we had previous, it is not tough to come to the conclusion that numerous factors influence the fund or net working capital needs. Fund needs vary along with t

1. Single product or single mix of products 2. Variable cost, fixed cost and selling price are constant 3. The level of production will equal the level of sales Example:


Both the parts, Profit and Loss Account and Trading Account of last account are interdependent upon each other. Gross Profit or loss plays a very important role in the calculation

Operation and Design of Cost Accounting Systems A number of features should be taken into account previously to finalizing the design of a cost and management accounting syste

Interstate Manufacturing produces brass fasteners and incurred the following costs for the year just ended: Materials and supplies used Brass $75,000 Repair parts 16,000

Find Out the Memorandum Reconciliation Account The givens are the final accounts of a company for the year ending on date 31st December 1999. Manufacturing Trading Loss and Pr

Usefulness of Variance Analysis Carefully note that while prices are being charged to production, it can be done at the actual or standard price. For purposes of making varian

Value one stock using the dividend discount model of stock valuation with two periods of constant growth (not the simple one period growth model).  See chapter 18 of the textbook

Bakers Bagels LLC produces and sells 20 types of bagels by the dozen. Bagels are priced at $6.00 per dozen (or $0.50 each) and cost $.020 per unit to produce. The company is consid