Idle Time Variance
An employer’s overhead cost per employee is also considered, in addition to the employer’s annual taxes. Each cost is added together and then divided by the employee’s hours worked per year. To compute the direct labor quantity variance, subtract the...
Efficiency variance
The units produced are the equivalent units of production for the labor cost being analyzed. Labor efficiency variance is also known as labor time variance and labor usage variance. Labor price variance equals the standard hourly rate you pay direct ...
How JOURNAL ENTRIES Work
For example, if you have $5 in cash, and want to buy some gasoline for your lawn mower, you take your portable gas can and your money to the gas station and exchange $5 in cash for $5 in gas. This transaction is recorded as an increase in the asset "...