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Labour efficiency variance
Costing
Can anyone explain the difference between labour yield and labour mix variances with practical example.
Answers (3)
Sudha Reddy
Mix variance measures the impact of the deviation from the standard mix Yield variance reflects the impact on costs of the deviation from the standard input material allowed for actual production.
Both put together is efficiency variance Labour efficeincy variance = (Hours to be taken - Hours actually taken ) Standard Rate Labour Mix Variance = (Revised standard hours - Actual hours ) x Standard Rate Labour Yield Variance = (Standard hours - Revised Standard hours) x Standard Rate
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