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Why Labor Cost Variance is so important?

When you are pursuing with discipline like accounting management, it is crucial to remember that labor plays a crucial role in your life. The aspirants have to be very careful about the management of labors because they are pillars of your success.

The labor cost variance actually computes the difference between the projected and actual labor cost. If the result or variance is in negative, then it is said that the labor cost is far more expensive than it was projected.

On the other hand,favorable or positive variance shows that labor cost was less expensive than it was actually anticipated. In order to get more related information and implications of labor cost variance learners can take Labor Cost Variance homework help.

Calculating Labor Cost Variance

Calculation of LCV is very important for the learners pursuing with this kind of accounting tools. The formula of labor cost variance like this-

Labor Cost Variance = Standard Cost of Labor â€“ Actual Cost of Labor

or it can also be derived through –

Labor Cost Variance = (Actual cost â€“ Standard cost) x Actual hours worked

We can help the learners in solving the calculation part of they take Labor Cost Variance assignment help from the subject experts of myhoemworkhelp.com.

Different causes of labor coast variance

• Incorrect standards
• Benefits changes
• Staffing variances

Learners can get more information about the causes of labor cost variances through Labor Cost Variance homework help.

Factors behind the standard labor cost

Before mentioning the factors, it is important to note that the standard cost of labor is fixed by industryâ€™s engineering employees and by the human resource managers. Now heading toward the factors and they are:

• Number of promotion into greater pay levels
• Increasing number of new hiring that too at different rate of pay
• Number of workers retiring
• Anticipated mix of pay levels amongst the production staffs

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