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Samantha Allen
on Oct 10, 2024

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If skilled workers with high hourly rates of pay are given duties that require little skill and call for lower hourly rates of pay, this will result in a favorable labor rate variance.

Labor Rate Variance

The difference between the actual cost of direct labor and the expected (or standard) cost, reflecting how efficiently labor resources are used.

Skilled Workers

Individuals who possess specialized training, expertise, or significant experience in a particular field or job.

Hourly Rates

The cost or pay rate allocated per hour of labor or service provided.

  • Analyze the implications of labor rate and efficiency variances on production costs.
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Coleman KnightOct 14, 2024
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