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Labour rate variance

AAMAAL5y ago
When we have labour hrs paid n labour hrs worked...means their is ideal time... But for labour rate variance what labour hrs should be multiplied by the standard rate?
John MoffatJohn MoffatTutor5y ago#1
The actual hours that were paid.
AAMAAL5y ago#2
Okay... But Kaplan text book shows Actual hrs paid *actual labour rate Actual hrs worked *standard labour rate... So am confused
John MoffatJohn MoffatTutor5y ago#3
What you have quoted from the Kaplan book is not the rate variance. The labour rate variance is the actual hours paid at actual rate, compared with actual hours paid at standard pay rate. Do watch my lectures on idle time variances.
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