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

Role of cost accounting in organization, Role of Cost Accounting in Organiz...

Role of Cost Accounting in Organization Like part of their jobs, such cost accountants interpret results, and then report them to management and give analysis such assist deci

Ms, Goga Ltd is busy building a five-star hotel in the area, they use the p...

Goga Ltd is busy building a five-star hotel in the area, they use the percentage of completion method to determine profits and would like to calculate the profit for the year. dra

Compute variances for variable costs and fixed costs, The Houston Chamber O...

The Houston Chamber Orchestra presents a series of concerts throughout the year. Budgeted fixed costs total $300,000 for the concert season; variable costs are expected to average

Features of effective cost center framework, Features of Effective Cost Cen...

Features of Effective Cost Center Framework During the establishing cost centers, an organization must consider the given points as: a) Clear definition about the cost cent

Variable costs, Variable Costs Are costs such raise or fall proportio...

Variable Costs Are costs such raise or fall proportionately along with the level of activity that is such portion of the cost of an activity which changes along with the leve

Labour cost, labour cost related case study with solution

labour cost related case study with solution

Variance, What is a standard and acceptable variance

What is a standard and acceptable variance

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