## Favorable direct labor rate variance

Direct labour cost variance is the difference between the standard cost for actual production This variance is favorable since the actual hours used are less than the standard hours allowed. This may be the result of efficient use of labor time $10,000 Adverse. Analysis. A favorable labor rate variance suggests cost efficient employment of direct labor by the organization. Reasons for a favorable labor 5 May 2017 The labor rate variance measures the difference between the actual and expected while a favorable variance indicates that the cost of labor was less employees responsible for the direct labor component of a business. Like direct labor rate variance, this variance may be favorable or unfavorable. If workers manufacture a certain number of units in an amount of time that is less

## A favorable DL rate variance occurs when the actual rate paid is less than the estimated standard rate. It usually occurs when less-skilled laborers are employed (

lower quality materials). 7-10. Describe three reasons for an unfavorable direct manufacturing labor efficiency variance. Some A company has a favorable direct labor efficiency variance. A possible reason for this variance is that: -the production department used fewer labor hours than 25 Jul 2019 Direct labor price variance = (Standard rate - Actual rate) x Actual quantity and the direct labor efficiency variance is positive (300 favorable), 17 Feb 2016 123)July's direct manufacturing labor efficiency variance is: A)$750.00 unfavorable. B)$262.50 favorable. C)$487.50 favorable. D)None of A favorable labor rate variance suggests cost efficient employment of direct labor by the organization. Reasons for a favorable labor rate variance may include: An adverse labor rate variance indicates higher labor costs incurred during a period compared with the standard. Direct labor rate variance is equal to the difference between actual hourly rate and standard hourly rate multiplied by actual hours worked. This variance is also known as direct labor price variance. An unfavorable variance means that the cost of labor was more expensive than anticipated, while a favorable variance indicates that the cost of labor was less expensive than planned. This information can be used for planning purposes in the development of budgets for future periods, as well as a feedback loop back to those employees responsible for the direct labor component of a business.

### 25 Jul 2019 Direct labor price variance = (Standard rate - Actual rate) x Actual quantity and the direct labor efficiency variance is positive (300 favorable),

This $1 difference—multiplied by the 50 actual hours—results in a $50 favorable direct labor rate variance. (The direct labor rate variance could be called the 14 Feb 2019 Direct labor rate variance $15,000 favorable. Direct labor time variance $25,000 unfavorable. Standard hours. During May, the company used $26 per hour Direct Labor Time Variance = $-26000 favorable Variance **** 4* 16500=66000 Total direct labor cost variance: Direct Labor Cost Variance

### A favorable direct labor efficiency variance might indicate that. A) higher skilled workers were used that performed the task slower than expected. B) higher skilled workers were used that performed the task faster than expected. C) lower skilled workers were paid a higher wage than expected.

The direct labor (DL) variance is the difference between the total actual direct labor cost and the total standard cost. The total actual direct labor cost and total standard direct labor cost may be computed as follows: If the total actual cost incurred is less than the total standard cost, the variance is favorable. To compute the direct labor price variance, subtract the actual hours of direct labor at standard rate ($43,200) from the actual cost of direct labor ($46,800) to get a $3,600 unfavorable variance. This result means the company incurs an additional $3,600 in expense by paying its employees an average of $13 per hour rather than $12. A positive value of direct labor rate variance is achieved when standard direct labor rate exceeds actual direct labor rate. Thus positive values of direct labor rate variance are favorable and negative values are unfavorable.

## 17 Feb 2016 123)July's direct manufacturing labor efficiency variance is: A)$750.00 unfavorable. B)$262.50 favorable. C)$487.50 favorable. D)None of

Like direct labor rate variance, this variance may be favorable or unfavorable. If workers manufacture a certain number of units in an amount of time that is less A favorable DL rate variance occurs when the actual rate paid is less than the estimated standard rate. It usually occurs when less-skilled laborers are employed ( A favorable variance occurs when your actual direct labor costs are less than your standard, or budgeted, costs. A labor variance that is a negative number is A direct labor variance is caused by differences in either wage rates or hours worked. As with This change saves the company $4,800 — a favorable variance.

Direct labor rate variance is equal to the difference between actual hourly rate and standard hourly rate multiplied by actual hours worked. This variance is also known as direct labor price variance. An unfavorable variance means that the cost of labor was more expensive than anticipated, while a favorable variance indicates that the cost of labor was less expensive than planned. This information can be used for planning purposes in the development of budgets for future periods, as well as a feedback loop back to those employees responsible for the direct labor component of a business. If workers manufacture a certain number of units in an amount of time that is less than the amount of time allowed by standards for that number of units, the variance is known as favorable direct labor efficiency variance. The direct labor (DL) variance is the difference between the total actual direct labor cost and the total standard cost. The total actual direct labor cost and total standard direct labor cost may be computed as follows: If the total actual cost incurred is less than the total standard cost, the variance is favorable.