Direct labor mix variance
Written by True Tamplin, BSc, CEPF®
Updated on July 10, 2021
Variance used to analyze effect of changed in the mix of labor on erect labor cost. Computed as:
[(Actual labor mix Standard labor mix percentage – Standard labor mix percentage) x (Actual total units of labor inputs used)] x (Standard individual price per unit of labor input – Standard average price per unit of labor input).