Direct labour rate variance, Cost Accounting

Assignment Help:

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.


Related Discussions:- Direct labour rate variance

Determine the economic order quantity, A retailer knows the annual demand f...

A retailer knows the annual demand for one of its product is 100,000 units, the ordering costs are £25 per order and the average carrying cost per unit is 35 pence. You are require

Break-even chart, Break-Even Chart This is a diagrammatic presentation...

Break-Even Chart This is a diagrammatic presentation of the relationship among costs, prices, expenses and the sales volume. A break-even chart expresses revenue and expens

Find out the cost per unit, Find Out the Cost per Unit Material A is ...

Find Out the Cost per Unit Material A is added at the start of a production process. Overheads and Labor are added continuously throughout the production process. At the endi

Direct materials and direct labor:, McDaniel Company manufactures 100-pound...

McDaniel Company manufactures 100-pound bags of fertilizer that have the following unit standard costs for direct materials and direct labor: Direct Materials (100 lbs. @ $1.00

Interest earned on down payment, You sell a machine for $600,000. You allow...

You sell a machine for $600,000. You allow the client to pay 1/3 at the time of the sale and 1/3 at the end of year one and 1/3 at the end of year two. The company earns 10% on ass

Accelerated cost recovery system - acrs, ACRS is a system of depreciation s...

ACRS is a system of depreciation started by the Economic Recovery Tax Act of 1981. ACRS depreciation relies on recovery periods in spite of useful life. These periods were preset b

Calculate the breakeven fee income, A company provides several different se...

A company provides several different services to its customers from a single office. Fixed costs of the office, including staff costs, are absorbed into the company's service costs

Activity Based Costing, How do I figure the estimated activity and estimate...

How do I figure the estimated activity and estimated allocation base?

Advantages of standard costing, ADVANTAGES OF STANDARD COSTING 1.     I...

ADVANTAGES OF STANDARD COSTING 1.     It offers a yardstick for measurement of performance. 2.     It helps 'Management by Exception'. 3.     It allows the management to

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd