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Labor cost variance means the difference between standard labor cost and actual labor cost.

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Labor cost variance means the difference between standard labor cost and actual labor cost.

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Average direct labor cost is the opening direct labor cost + closing direct labor cost / 2

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In labor intensive industry direct labor cost is used as cost driver.

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Rates is cost-per-hour, labor cost is the total, regardless of time.

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If indirect labor change with the change of units of product then indirect labor is a variable cost.

If change in the quantity of units has no impact on indirect labor cost then it is a fixed cost.

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