Enter the number of direct labor hours budgeted, the number of direct hours actually worked, and the average hourly rate into the calculator to determine the labor efficiency variance.
- Labor Rate Variance Calculator
- Labor Productivity Calculator
- Labor Force Participation Rate Calculator
Labor Efficiency Variance Formula
The following equation is used to calculate a labor efficiency variance.
LEV =(LB – HW)* LR
- Where LEV is the labor efficiency variance
- LB is the labor hours budgeted
- HW is the total hours actually worked
- LR is the average hourly labor rate
Labor Efficiency Variance Definition
A labor efficiency variance is defined as the total difference in cost between a budgeted labor hours and the actual labor hours worked on a job.
Labor Efficiency Variance Example
How to calculate labor efficiency variance?
- First, determine the budgeted hours.
Determine the total number of direct labor hours budgeted for the job.
- Next, determine the hours worked.
Measure the total hours of direct labor actually worked.
- Next, determine the labor rate.
Calculate the average labor rate per hour.
- Finally, calculate the labor efficiency variance.
Calculate the LEV using the equation above.
Any positive number is considered good in a labor efficiency variance because that means you have spent less than what was budgeted.
|labor efficiency variance calculator|
|labor efficiency variance formula|
|labor efficiency variance|
|how to calculate the labor efficiency variance|
|labour efficiency variance|
|labor rate variance|
|labour rate variance|
|direct labor efficiency variance|
|labour efficiency variance formula|
|direct labor efficiency variance formula|
|direct labour efficiency variance|
|labor spending variance|
|direct labour efficiency variance formula|
|how to calculate labor efficiency variance|
|direct labor efficiency|
|how to calculate labour efficiency variance|
|causes of labour efficiency variance|
|favourable labour efficiency variance|
|direct labour efficiency|
|dl efficiency variance|
|wage rate variance|
|reasons for labour efficiency variance|
|formula for labour efficiency variance|
|formula of labour efficiency variance|
|favorable labor efficiency variance|
|direct labor spending variance|
|unfavorable labor efficiency variance|