# causes of favorable and unfavorable labor rate variance

labor rate variance does not occur due to change in labor rates because they are normally predictable. The common reason of an unfavorable labor rate variance is inappropriate use of labor by production supervisors.In Direct labor rate variance, this variance may be favorable or unfavorable. If workers produce a certain number of units in an amount of time that is less than the amount of time allowed by standards for that number of units, the variance is known as favorable direct labor efficiency variance. On the other hand, if workers take an amount of time that is more than the amount of time allowed by standards, the variance is known as unfavorable direct labor efficiency variance.

## Direct Labor Rate | Price Variance rate

Direct Labor Rate | Price Variance: Learning Objective of the articles: Define and explain “direct labor rate | price variance /labour rate variance” . How direct labor rate or price variance rate is calculated? What are the reasons / causes of favorable and unfavorable