Question

Labour cost variance is the difference between standard cost of labour and ___________.

• A. Budgeted cost of Labour
• B. Estimated cost of Labour
• C. Actual cost of Labour
• D. None of the Above

Answer 1

The correct option is C Actual cost of Labour

Labor cost variance = Standard labor cost - Actual labor cost.

Hence labour cost variance is the difference between standard cost and actual cost of labour.