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

Ask an Expert

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

Write your message here..

Related Questions

Absorption and marginal costing, company XY produces a single product ''XY1... company XY produces a single product ''XY1" selling price per unit 15, direct materials per unit 4 direct labour per unit 3 variable overhead per unit 2 fixed overhead incurred 12

Importance of cost classification, Importance of Cost Classification A... Importance of Cost Classification Analysis of cost behaviour is significant to all organizations for effective management. It is since many organizations have a unique cost st

Principle of accounting, what is the implication of applying accounting pr... what is the implication of applying accounting principle wrongly

Calculate the taxable profit, Gustav Ltd commenced operations on 1 July 201... Gustav Ltd commenced operations on 1 July 2011 and presents its first statement of comprehensive income for the year ending 30 June 2012 and first statement of financial position a

Find the high future rates of return, Assume your grandparents have just gi... Assume your grandparents have just given you $20,000 on the condition that you invest the money in the stock market. As you contemplate making your investment choices, what accoun

Ow much overhead will be assigned to each sailboat produced?, ShipShape Com... ShipShape Company makes 2 different types of boats, commercial fishing and sail boats both for recreation and competition. The company consists of two different departments, design

Using the dupont formula for rate of return on investment, The vice preside... The vice president of operations of six layer computer Inc. is evaluating the performance of two divisions organized as investments centers. Invested assets and condensed income st

Manufacturing accounting, material products material products

Determine sales revenue and net income, Students will prepare a Comprehensi... Students will prepare a Comprehensive Master Budget and Budgeted Financial Statements for Earrings Unlimited for the three-month period ending June 30. This includes: Sales Budg

#title.suspense account, The book of Deven Verma could not be tallied. The ... The book of Deven Verma could not be tallied. The account transferred the difference of Rs. 1.270 in the suspense account on the debit side. the following mistakes were found later