Ipce standard costing labour variance

sagar uttam shinde (professor) (179 Points)

27 October 2011  

If the formula for revised labour efficiency variance (RLEV) is :

=( standard time for actual output - revised standard time) X standard rate {please elaborate this formula more ?}

then in which situation ans. will be favourable or adverse, please mention both. kindly give ans. in following format.

standard time for actula output  < revised standard time = RLEV (favourable or adverse?)    AND

standard time for actula output  > revised standard time = RLEV (favourable or adverse?)

AND, if the formula for revised variance (RV) is:

=original std. cost of actual output - revised std. cost of actual output {please elaborate this formula more ?}

then in which situation ans. will be favourable or adverse, please mention both. kindly give ans. in following format.

original std. cost of actual output < revised std. cost of actual output = RV (favourable or adverse?)  AND

original std. cost of actual output > revised std. cost of actual output = RV (favourable or adverse?)

thanks in advance.yes