Flexible budget for analysis, Direct labour rate variance = (AH x AR) - (AH x SR) Labour

Flexible budget for analysis,

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Direct labour rate variance = (AH x AR) - (AH x SR) Labour type (AH X AR) - (AH x SR) Assembly PCB $93 600 (3900 x $24) Rate variance 115 500 (3500 x $30) 10 500 U OD 71 280 (2400 x $27) $6 480 U Total direct labour rate variance $16 980 U (b) Direct labour efficiency variance = SR (AH - SH) Labour type SR X (AH-SH)* Assembly $24 x (3900 4400) PCB $30x (3500 3300) OD Total direct labour efficiency variance $27 x (2400-2200) * SH = standard hours per output unit x actual output of 2 200 units. Rate variance $12 000 F 6 000 U 5 400 U $600 F Direct labour rate variance = (AH x AR) - (AH x SR) Labour type (AH X AR) - (AH x SR) Assembly PCB $93 600 (3900 x $24) Rate variance 115 500 (3500 x $30) 10 500 U OD 71 280 (2400 x $27) $6 480 U Total direct labour rate variance $16 980 U (b) Direct labour efficiency variance = SR (AH - SH) Labour type SR X (AH-SH)* Assembly $24 x (3900 4400) PCB $30x (3500 3300) OD Total direct labour efficiency variance $27 x (2400-2200) * SH = standard hours per output unit x actual output of 2 200 units. Rate variance $12 000 F 6 000 U 5 400 U $600 F