Friday, January 25, 2008

Calculating Direct Labor Variances

The process of determining direct labor variances is the same as for determining the direct materials variances.

Direct Labor (DL) Rate Variance =
(actual hrs used x actual rate per hr) – (actual hrs used x standard rate per hr)

Direct Labor (DL) Efficiency Variance =
(actual hrs used x standard rate per hr) – (standard hrs allowed x standard rate per hr)

Additional Accounting Problem:

Calculate Accounting Variance Problem

No comments:

Popular Accounting Problems

The information on this site is for informational purposes only and should not be used as a substitute for the professional advice of an accountant, tax advisor, attorney, or other professional.