Question

What are the two variances between the actual cost and the standard cost for direct labor?...

  1. What are the two variances between the actual cost and the standard cost for direct labor? Who generally has control over the direct labor cost variances?

Homework Answers

Answer #1

The two variances between the actual cost and the standard cost for direct labor are :

  1. Direct labor rate variance
  2. Direct labor quantity variance

Direct labor rate variances arised due fluctuations in labor rate therefore Human resources department controls over this.

Direct labor quantity variance arise due to fluctuations in used labor hours in production therefore Production department is responsible for this .

​​​​​​​Conclusion:-Human resources and production department combined managed the labor cost variances

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