Labor Variance Analysis
The quantity variance for direct labor is generally called direct labor efficiency variance or direct labor usage variance. This variance measures the productivity of labor time. No variance is more closely watched by management, since it is widely believed that increasing the productivity of direct labor time is vital to reducing costs.
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
Direct Labor Efficiency Variance Learning Objective of the article: Define and explain “direct labor efficiency | usage variance” . How direct labor efficiency (labour analysis) or usage variance is calculated? What are the reasons / causes of unfavorable or favorable labor efficiency variance? Contents: