Question

What do you mean by Labour Variances? Explain various types of such variances.

Answer 1

hey!

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defination:-

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• labor variance arises when the actual expense associated with a labor activity varies either better or worse from the expected amount. The expected amount is typically a budgeted or standard amount. The labor variance concept is most commonly used in the production area, where it is called a direct labor variance.

• Types of Variances:-

There is a need of knowing types of variances before measuring the variances. Generally, the variances are classified on the following basis.

There is a need of knowing types of variances before measuring the variances. Generally, the variances are classified on the following basis.A. On the basis of Elements of Cost.

• There is a need of knowing types of variances before measuring the variances. Generally, the variances are classified on the following basis.A. On the basis of Elements of Cost.Material Cost Variance.
• There is a need of knowing types of variances before measuring the variances. Generally, the variances are classified on the following basis.A. On the basis of Elements of Cost.Material Cost Variance.Labour Cost Variance.
• There is a need of knowing types of variances before measuring the variances. Generally, the variances are classified on the following basis.A. On the basis of Elements of Cost.Material Cost Variance.Labour Cost Variance.Overhead Variance.

B. On the basis of Controllability

• B. On the basis of ControllabilityControllable Variance.
• B. On the basis of ControllabilityControllable Variance.Uncontrollable Variance.

C. On the basis of Impact

• C. On the basis of ImpactFavorable Variance.
• C. On the basis of ImpactFavorable Variance.Unfavorable Variance

D. On the basis of Nature

• D. On the basis of NatureBasic Variance.
• D. On the basis of NatureBasic Variance.Sub-variance.

hope help u

Answer 2

Explanation:

Material Variances: - These arise fromthe difference between actual costs of materials used in production and standard costs of materials specified for the goods produced. ... Overheadvariances:- It may be defined as thesum total of indirect material, labourand expense costs.