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Labour Mix Variance Formula

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Labour Mix Variance is a concept used in cost accounting to assess the difference between the actual and budgeted labor mix. Check FAQs

LMV = SR \cdot (RSR - AT)

LMV - Labour Mix Variance?SR - Standard Rate?RSR - Reversed Standard Rate?AT - Actual Time?

Labour Mix Variance Example

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Here is how the Labour Mix Variance equation looks like with Values.

Here is how the Labour Mix Variance equation looks like with Units.

Here is how the Labour Mix Variance equation looks like.

15540 = 140 \cdot (115 - 4)

15540 = 140 \cdot (115 - 4)

15540 = 140 \cdot (115 - 4)

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Labour Mix Variance Solution

Follow our step by step solution on how to calculate Labour Mix Variance?

FIRST Step Consider the formula

LMV = SR \cdot (RSR - AT)

Next Step Substitute values of Variables

∴

LMV = 140 \cdot (115 - 4)

Next Step Prepare to Evaluate

∴

LMV = 140 \cdot (115 - 4)

LAST Step Evaluate

∴

LMV = 15540

Labour Mix Variance Formula Elements

Variables

Labour Mix Variance

Labour Mix Variance is a concept used in cost accounting to assess the difference between the actual and budgeted labor mix.

Symbol: LMV

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Labour Mix Variance

Standard Rate

Standard Rate refers to the amount paid per hour for work, often determined by industry standards or local laws.

Symbol: SR

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Standard Rate

Reversed Standard Rate

Reversed Standard Rate is the minimum wage or adjustments to industry standards.

Symbol: RSR

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Reversed Standard Rate

Actual Time

Actual Time refers to the time taken to produce an item on a production line versus the planned production time.

Symbol: AT

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Actual Time

Other formulas in Cost Accounting category

Go Material Cost Variance

MCV = (SQAO \cdot STP) - (ACQ \cdot ACP)

Go Material Price Variance

MPRV = ACQ \cdot (STP - ACP)

Go Material Quantity

MQ = STP \cdot (SQ - ACQ)

Go Revised Standard Quantity

RSTQ = (\frac{SQM}{TSQ}) \cdot TAQ

How to Evaluate Labour Mix Variance?

Labour Mix Variance evaluator uses Labour Mix Variance = Standard Rate*(Reversed Standard Rate-Actual Time) to evaluate the Labour Mix Variance, Labour Mix Variance measures the difference between the actual labour mix and the budgeted labour mix. Labour Mix Variance is denoted by LMV symbol.

How to evaluate Labour Mix Variance using this online evaluator? To use this online evaluator for Labour Mix Variance, enter Standard Rate (SR), Reversed Standard Rate (RSR) & Actual Time (AT) and hit the calculate button.

FAQs on Labour Mix Variance

What is the formula to find Labour Mix Variance?

The formula of Labour Mix Variance is expressed as Labour Mix Variance = Standard Rate*(Reversed Standard Rate-Actual Time). Here is an example- 15540 = 140*(115-4).

How to calculate Labour Mix Variance?

With Standard Rate (SR), Reversed Standard Rate (RSR) & Actual Time (AT) we can find Labour Mix Variance using the formula - Labour Mix Variance = Standard Rate*(Reversed Standard Rate-Actual Time).

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Labour Mix Variance Formula

Labour Mix Variance Example

Labour Mix Variance Solution

Labour Mix Variance Formula Elements

Other formulas in Cost Accounting category

How to Evaluate Labour Mix Variance?

FAQs on Labour Mix Variance

Variable Name