# ECONOMICS

## COST ACCOUNTING

### STANDARD COSTING AND VARIANCE ANALYSIS

 Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
It is the sum of labor mix and yield variances.
 A Labor Rate Variance B Labor Mix Variance C Labor Efficiency Variance D Total Labor Variance
Explanation:

Detailed explanation-1: -Yield variance is a measure of the difference in output. Meanwhile, mix variance is the difference in overall material usage or inputs. Specifically, material usage can vary because a mix of products or inputs is used, which are different from the standard mix.

Detailed explanation-2: -The total Labor variance. The sum of labor rate variance and labor efficiency variance is equivalent to the total labor variance.

Detailed explanation-3: -BusinessAccountingThe sum of the material mix and material yield variances equals the total material variance. the volume variance the material quantity variance. the material purchase price variance.

Detailed explanation-4: -(ii) When Standard and actual times of the labour mix are different : Changes in the composition of a gang may arise due to shortage of a particular grade of labour. It may be calculated as follows : LMV = (RSH-AH) x SR Where, Revised Standard Hour (RSH) = Total Actual Hour/ Total standard hour X actual hour.

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