Labor Rate Variance Calculator

Calculate Labor Rate Variance





Formula

The formula to calculate the Labor Rate Variance (LRV) is:

\[ LRV = H \cdot (AR - SR) \]

Where:

Labor Rate Variance Definition

A labor rate variance is a measure between the total amount paid for labor and the standard amount paid.

Example Calculation

Let's assume the following values:

Using the formula:

\[ LRV = 40 \cdot (25 - 20) = 40 \cdot 5 = 200 \]

The Labor Rate Variance (LRV) is $200.