Direct labour efficiency variances, Cost Accounting

Assignment Help:

Direct Labour Efficiency Variances

It is the difference between the standard hours allowed for the actual production achieved and the hours actually worked, all valued at THE standard labour rate.  Using an equation, this can be shown as given:

Direct labour Efficiency Variance = (actual labour hours x standard rate) - (standard hour hours x standard rate)

(AHrs x SR) - (SHrs x SR)

Factoring SR out of the equation we obtain

Direct Labour efficiency variance = SR (AHrs - SHrs).

Therefore the direct labour efficiency variance arises because of the actual hours utilized in production varying from the standard hours expected to have been utilized.


Related Discussions:- Direct labour efficiency variances

Give feasibility study and propose an electronic system, A small company em...

A small company employing around 25 people manufactures and sells anthropometric measuring equipment - equipment used mainly in hospitals to measure the height and other dimensions

Wat is bep in cost accounting, The level of activity at which total revenue...

The level of activity at which total revenues eqivalent total costs. A point at which there is no profit and no loss.

Job costing, Job Costing This is a costing method that is applied whe...

Job Costing This is a costing method that is applied when a job or cost unit is relatively of small size, is undertaken to fit the customer's specifications and is of compara

Cost Accountng, a local government autority owns and operates a leisure cen...

a local government autority owns and operates a leisure center with numerous sporting facilities , residential accomodation , a cafeterial and a sports shop. the summer season last

Compute the industry volume variance for each product, The next year's budg...

The next year's budget for Benny, Inc., is given below: Product 1 & 2 Sales $945,000 & 688500 Variable costs 459,900 & 297,000 Fixed costs 300

Business and the generation of accounting standards, This time of year we a...

This time of year we all here about football. For me it is the bad news of how poorly the Buffalo Bills are performing. Hopefully your favorite team is doing well. One thing we

prepare a simple balance sheet, Assume that Banc One receives a primary de...

Assume that Banc One receives a primary deposit of $1 million. The bank must keep reserves of 20 percent against its deposits. Prepare a simple balance sheet of assets and liabilit

Absorption of non production overheads in production cost, Absorption of No...

Absorption of Non Production Overheads in Production Cost Product costs may be compiled for a range of purposes including a) Stock valuation b) Product pricing c) Dec

Differential exploitation account, initial stock.=21,926,150 purchases.=361...

initial stock.=21,926,150 purchases.=361,550,000 other expenses=207,000,000 operatig profit=34,500,000 sqles=600,000,000 disc received=23,976,150 final stock=1000,000 variable exp

Importance of cost classification, Importance of Cost Classification A...

Importance of Cost Classification Analysis of cost behaviour is significant to all organizations for effective management. It is since many organizations have a unique cost st

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