Direct labour variance

== Direct labour cost variance ==--Louiscake 04:34, 27 Apr 2005 (UTC)

Direct labour cost variance is the different between the standard cost for actual production and the actual cost in production. There are two labour variances.

1. Labour Rate Variance - the difference between the standard cost and the actual cost paid foe the actual number of hours.

2. Labour efficiency variance - the difference between the standard labour hour that should have been worked for the actual number of unit produced and the actual number of hour worked when the labour hours are valued at the standard rate.