Standard Costing and Labour Cost Variance

Abstract

The article contains various methods of calculating labour variance which is used in standard costing to control cost of production . It is an attempt to find out the results readily (momentary) by filling the given values in the formulae given in the article. It will help the industry to find out the variance in an easy way and to apply to curtail the cost of production as for as possible. It will also be helpful for the cost accountants to write the cost audit report and to give their valuable suggestions to save the national assets and hence to control the cost of production. Instant comparison of efficient and inefficient units is possible from the point of view of labour and to take an appropriate remedial action as early as possible.