Direct Labor Variances

This video demonstrates a diagrammatic method of separating causes of variance and their attribution using the case of Frank's Bikes. Frank has fixed amounts of labor, which is a slight twist on the case of Jerry's Ice Cream, which had a variable amount of labor. Small and large companies differ in how they manage their labor supply, as do companies with one product compared to companies with many products.

Source: Tony Bell
Creative Commons License This work is licensed under a Creative Commons Attribution 3.0 License.

Last modified: Tuesday, September 14, 2021, 4:14 PM