LABOR RATE (PRICE) VARIANCE
\lˈe͡ɪbə ɹˈe͡ɪt pɹˈa͡ɪs vˈe͡əɹi͡əns], \lˈeɪbə ɹˈeɪt pɹˈaɪs vˈeəɹiəns], \l_ˈeɪ_b_ə ɹ_ˈeɪ_t__ p_ɹ_ˈaɪ_s__ v_ˈeə_ɹ_iə_n_s]\
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The difference at a point in time between the expected paid work and the actual amount paid. Calculate actual labor rate per hour and standard labor rate per hour and then multiply by number of hours actually worked. The difference between the them calculates the labor rate variance.
By Henry Campbell Black
