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Labour rate variance

This topic has 3 replies, 2 voices, and was last updated 4 years ago by John Moffat.

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February 27, 2021 at 8:13 pm #612030
nk16
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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?
February 28, 2021 at 9:21 am #612074
John Moffat
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The actual hours that were paid.
March 1, 2021 at 5:05 pm #612401
nk16
Participant
- Topics: 71
- Replies: 39
Okay…
But Kaplan text book shows
Actual hrs paid *actual labour rate
Actual hrs worked *standard labour rate…
So am confused
March 2, 2021 at 9:05 am #612549
John Moffat
Keymaster
- Topics: 57
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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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