Direct Labor Cost Variances

The differences between actual and standard costs are called cost variances. A favorable cost variance occurs when the actual cost is less than the standard cost. An unfavorable cost variance occurs when the actual cost exceeds the standard cost.

Required - Provide your answers to the following questions:

1. What are the two variances between the actual cost and the standard cost for direct labor?

2. Who generally has control over the direct labor cost variances?