Ipce standard costing labour variance

If the formula for revised labour efficiency variance (RLEV) is :

=( standard time for actual output - revised standard time) X standard rate {please elaborate this formula more ?}

then in which situation ans. will be favourable or adverse, please mention both. kindly give ans. in following format.

standard time for actula output  < revised standard time = RLEV (favourable or adverse?)    AND

standard time for actula output  > revised standard time = RLEV (favourable or adverse?)

AND, if the formula for revised variance (RV) is:

=original std. cost of actual output - revised std. cost of actual output {please elaborate this formula more ?}

then in which situation ans. will be favourable or adverse, please mention both. kindly give ans. in following format.

original std. cost of actual output < revised std. cost of actual output = RV (favourable or adverse?)  AND

original std. cost of actual output > revised std. cost of actual output = RV (favourable or adverse?)

thanks in advance.yes

Replies (1)

If Revised standard time is LESS THAN the Standard time, then result is FAVOURABLE.

 

If Revised standard time is GREATER THAN the Standard time, then result is ADVERSE.

 

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