📊Variance Analysis
Direct Labor Efficiency Variance
(Actual Hours - Standard Hours Allowed) × Standard Rate = DL Efficiency Variance
What It Means
Difference due to labor efficiency.
Related Formulas
Price Variance (Materials or Labor)
(Actual Price - Standard Price) × Actual Quantity = Price Variance
Quantity Variance (Materials or Labor)
(Actual Quantity - Standard Quantity) × Standard Price = Quantity Variance
Direct Materials Price Variance
(Actual Price - Standard Price) × Actual Quantity Purchased = DM Price Variance
Direct Materials Quantity Variance
(Actual Qty Used - Standard Qty Allowed) × Standard Price = DM Quantity Variance
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