Expected Labor Cost
The expected labor cost is the standard run and setup hours multiplied by the work center rate.
Accumulated Cost: Labor
The accumulated cost for labor is the actual hours multiplied by the actual pay rate.
The actual pay rate is the employee’s pay rate from Actual Pay Rate Maintenance if available, or the work center rate if Actual Pay Rate not available.
Rate Variance Posted: Labor
The rate variance posted for labor is the difference between the work center rate and the actual pay rate multiplied by the actual hours.
Usage Variance Posted: Labor
The usage variance posted for labor is the difference between the actual hours and the standard hours multiplied by the work center rate. These variances can be calculated at each shop floor control transaction: Labor Feedback Work Order(17.1), Labor Feedback Employee (17.2), Labor Feedback Work Center (17.3) or at Work Order Accounting Close (16.21)
When these calculations occur is controlled by the Work Order Control (16.24)
