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

Conceptual Frame work, What are the dependent and independent variables in ...

What are the dependent and independent variables in Cost Accounting??

Calculate the manufacturing cost per unit, the following activities relatin...

the following activities relating to indirect production costs: Activity Activity Costs Cost Drivers Machine Setup $180,000 1,500 setup hours Materials Handling $50,000 12,500 poun

Compute the manufacturing overhead, Slick Corporation is a small producer o...

Slick Corporation is a small producer of synthetic motor oil. During May, the company produced 5,000 cases of lubricant. Each case contains twelve quarts of synthetic oil. To achie

Budgetary planning and budgetary control, Difference between budgetary plan...

Difference between budgetary planning and budgetary control

Goal congruence - behavioural aspects of standards, Goal Congruence - Behav...

Goal Congruence - Behavioural Aspects of Standards A perfect variance analysis and standard costing system must enhance goal congruence between as: i. The goal of individua

Manufacturing, What are the reasons of preparing income statement?

What are the reasons of preparing income statement?

Cost accounting, diff between cost estimation and cost accounting

diff between cost estimation and cost accounting

Calculate the nonvalue-added cost per unit, Question Roseville, Ltd., s...

Question Roseville, Ltd., sells one of its products for $500 each. Sales volume averages 1,000 units per year. Recently, its main competitor priced their competing product at 1

Basic earnings per share, What are 'potential' ordinary shares?  In your an...

What are 'potential' ordinary shares?  In your answer provide three examples to support your explanation.  Briefly outline the process (steps) to determine whether 'potential' ordi

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