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**Accounting Variance:**Accounting professionals and other professionals from the business world utilize variances to accommodate inevitable budgetary changes, specifically in expenditure. Variances occur when an actual cost differs from the average expense that was planned for. There are two kinds of variances. Favorable variances are when an organization is able to pay less on something than scheduled. Variances that are not favorable occur when an organization is required to pay more for something than scheduled. These types of variances may be seen in materials, labor or overhead budgets.

**A labor variation** occurs when the cost of labor to manufacture products is different from the normal or projected cost of labor. There are three major types of variance in labor. The variance in the price of labor is determined by subtracting the actual rate of pay from the budgeted standard rate, then multiplying that by the actual number of hours worked. The variance in the labor quantity can be determined when you multiply the rate of the normal by the variance between the budgeted hours against the actual hours budgeted. The entire direct variation in the labor rate is determined using the normal rate multiplied by the average number of hours, and then subtracting the sum from the rate that is actually paid and also the amount of hours.

Solution 1:Direct Material Cost VarianceActual CostStandard cost for actual quantityStandard CostDirect material price variance$1,798,800.00UDirect material quantity variance$66,300.00FDirect material cost variance$1,732,500.00USolution 2:Direct Labor Cost VarianceActual CostStandard cost for actual quantityStandard CostDirect Labor Rate variance$748,500.00FDirect Labor Efficiency variance$45,000.00FDirect labor cost variance$793,500.00FSolution 3:Controllable VarianceFixed overhead volume variance