The correct answer is: B. labour calendar variance
A labor calendar variance is the portion of labor cost variance that is due to the difference between predetermined working days and actual working days. It is calculated by multiplying the difference between the predetermined working days and the actual working days by the standard labor rate.
A labor idle time variance is the portion of labor cost variance that is due to the difference between the actual hours worked and the standard hours allowed for the actual production. It is calculated by multiplying the difference between the actual hours worked and the standard hours allowed by the standard labor rate.
A labor rate variance is the portion of labor cost variance that is due to the difference between the actual labor rate and the standard labor rate. It is calculated by multiplying the difference between the actual labor rate and the standard labor rate by the actual hours worked.
A labor efficiency variance is the portion of labor cost variance that is due to the difference between the actual production and the standard production. It is calculated by multiplying the difference between the actual production and the standard production by the standard labor rate.
Here is an example of how to calculate a labor calendar variance:
Suppose a company has a standard working week of 40 hours. In a particular week, the company actually worked 38 hours due to a holiday. The standard labor rate is $10 per hour. The labor calendar variance for the week is calculated as follows:
Labor calendar variance = (40 hours – 38 hours) * $10 per hour = $20
This means that the company incurred an additional cost of $20 due to the difference between the predetermined working days and the actual working days.