Total Direct Labor Variance: The total direct labor variance is a measure to determine the variation in the standard direct labor and the actual direct labor. This means that the difference between the cost which will be by the standard and the cost which is actual is calculated. Direct Labor Price Variance: The direct labor price variance is a measure to determine the variation in the estimated cost of the direct labor and the actual labor quantity used. Direct Labor Quantity Variance: The direct labor quantity variance is a measure to determine the variation in the estimated labor quantity and the actual labor quantity used. Overhead Variance: The overhead variance is the difference arising between the real overhead consumed in the production of a product and the estimated overhead determined in the production of that product. This is of two types the overhead controllable variance and the overhead volume variance. To determine: The total, price, and quantity labor variance.

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Chapter 26, Problem 3DIE

(a)

To determine

Total Direct Labor Variance: The total direct labor variance is a measure to determine the variation in the standard direct labor and the actual direct labor. This means that the difference between the cost which will be by the standard and the cost which is actual is calculated.

Direct Labor Price Variance: The direct labor price variance is a measure to determine the variation in the estimated cost of the direct labor and the actual labor quantity used.

Direct Labor Quantity Variance: The direct labor quantity variance is a measure to determine the variation in the estimated labor quantity and the actual labor quantity used.

Overhead Variance: The overhead variance is the difference arising between the real overhead consumed in the production of a product and the estimated overhead determined in the production of that product. This is of two types the overhead controllable variance and the overhead volume variance.

To determine: The total, price, and quantity labor variance.

(b).

To determine

The total overhead variance.

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