In this series, Academic Expert Carol Sargent introduces us to Direct Labor Variances, the third section of her Budgeting Super-Series. Carol explains what direct labor variances are, how the two components are quantity and rate, and the difference between labor rate variance and labor efficiency variance. She shows the viewer how to compute the two variances and how to interpret the two variances. This video lecture is ideal for any students enrolled in college or university level accounting or business programs.
In this series: 3 Videos | 00:14:41 Total Length
Two types of labor variances are identified and identified.
The formula for direct labor variance is given and a cumulative word problem involving materials and labor is presented.
The results of the cumulative problem are interpreted.