Labor Rate Variance: Definition & Formula

Instructions:

Choose an answer and hit 'next'. You will receive your score and answers at the end.

question 1 of 3

What is the name for the type of cost variance that focuses on working rates and hours?

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1. What is one reason for analyzing the results of the labor variance?

2. Which of the following pieces of information is NOT needed to compute the labor variance?

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About This Quiz & Worksheet

Multiple-choice questions will test what you know about labor rate variance. Quiz topics include a kind of cost variance based on hours and working rates and the purpose of analyzing the results of a labor variance.

Quiz & Worksheet Goals

The following areas will be covered on the quiz:

  • Information that's required to compute a labor variance
  • Two main components of direct labor variance
  • Computing labor quantity variance between two sets of figures

Skills Practiced

  • Reading comprehension - make sure you know the most important information from the related lesson on labor rate variance, including the reason for analyzing the results of a labor variance
  • Knowledge application - use your knowledge to answer questions about a kind of cost variance based on hours and working rates and the two main elements of a direct labor variance
  • Information recall - access the knowledge you've gained regarding the required information to compute a labor quantity variance

Additional Learning

More information is offered through the lesson we've named Labor Rate Variance: Definition & Formula. Here are some key topics to consider:

  • Labor variance example with hypothetical figures
  • Outcomes of labor cost analysis
  • Raises and incentives that come from calculating labor costs
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