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

Relationship among financial accounting and cost accounting, Relationship a...

Relationship among Financial Accounting and Cost Accounting The difference among management and cost accounting may be highlighted by using a number of questions namely as;

Calculate earnings, The Smiths have two children who live with them: Sandy ...

The Smiths have two children who live with them: Sandy and Judy. Both are full-time students. Sandy is an accomplished singer and made $4,200 during the year performing at special

Product versus period costs, Product Versus Period Costs Another way to...

Product Versus Period Costs Another way to look at manufacturing costs is to think of them as attaching to a product. In other words, goods result from the manufacturing proces

Pv ratio, Do I use the contribution per unit and the total sales for the de...

Do I use the contribution per unit and the total sales for the department in order to calculate the p/v ratio for a department

Expenditure for the base period and the current period, 1. The table below ...

1. The table below gives data for Southland where there are three consumption goods: bananas, coconuts and grapes. Goods Quantity in base period basket

Calculate the cash flow - capital cost, A company is evaluating the followi...

A company is evaluating the following lease or buy option.  A four year lease with annual payments of $25,000 payable at the beginning of the year. The tax shield is available a

Cost, product mix decisions with capacity constraint

product mix decisions with capacity constraint

Relevant costs, What are investment appraisal methods when opening a new pr...

What are investment appraisal methods when opening a new project?

Elements of cost, Elements of Cost Nearly there are three elements of c...

Elements of Cost Nearly there are three elements of cost - labor, material, and expenses. These are additional divided into indirect and direct material, indirect and direct la

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

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