Reasons of Labor related variances


Reasons of Labor efficiency variance:

 • Change in design and quality standard
• Poor working conditions
• Improper scheduling

Suggested course of solutions :

• Proper planning
• Proper training
• Healthy working environment
• Timelines for achieving set targets

Reasons of Rate efficiency variance:

• Improper placement of labour
• Increments / high labour wages
• Overtime

Suggested course of solutions :

• Time Scheduling for work performance
• Proper job allocation according to capabilities of workers
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