Labor Efficiency Variance
Formula
(Actual Hours - Standard Hours) × Standard Rate
Interactive Calculator
| Component | Value |
|---|---|
| Actual Hours | |
| Standard Hours Allowed | |
| Standard Rate | |
| Labor Efficiency Variance | — |
CategoryVariance Analysis
ComponentsLabor Efficiency Variance; Actual Hours; Standard Hours Allowed; Standard Rate
Example(5K - 4.8K) × $15 = $3K Unfavorable
External Links
- Variance (accounting) — Wikipedia