Labour Rate Variance. instructions (price of direct materials,…

Question Answered step-by-step Labour Rate Variance. instructions (price of direct materials,… Labour Rate Variance.instructions (price of direct materials, direct labour and overheads) are 10% more than what you budgeted for quantities are 5% (i.e sales level, quantity of materials used, etc) less. so my labour rate was $23.70 an hour but now it is $26.07 per hour, in working out the variance i know the formula would be (23.70-26.07) X actual hours worked.my question is where do i get the actual hours worked from? originally in my budget the actual hours would be 1307.5 to produce 1046 units (it takes 1.25 hrs per unit).but apparently i only produced 994 units if im being asked to reduce my quantities by 5% im assuming this includes production quantity as well as sales and materials used.would my hours still be the original budgeted 1307.5?or would it now be the hours based on only 994 units? Accounting Business Managerial Accounting ACC 2CAD Share QuestionEmailCopy link Comments (0)