Product Costing Setup > Set Up Work Order Control
  PPT
Set Up Work Order Control
Review the Post Variances at SFC (Shop Floor Control) field. This determines when labor and burden variances are calculated and posted if you are reporting labor.
If you do not report labor, then labor and burden amounts are absorbed at GL cost and no variances will be calculated if you indicate Previous Ops Complete (Work Orders) or set the Auto Labor Report field to Yes in Routing Maintenance (Advanced Repetitive)