Labor variance occurs when the projected or budgeted amount of cost of labor is either lower or higher than estimated. Labor variances happen for a variety of reasons, explains AccountingTools.com.

Discover how efficiency variance reveals the gap between expected and actual inputs in production and its impact on labor, materials, and costs.

In business, management sets the standards of what quantity of materials should be used for a particular job. Especially on a manufacturing production line, unit cost plays a significant role in the ...