Example 4: Accounting (Labor Usage for WC)

Actual Hours: 50

Earned Hours: 40

Actual Cost: $1050.00

Earned Cost: $800.00

Var Hrs: 10

Var $: $250.00

LaborUsageVar: 10 * $20 = $200.00

LaborRateVar: $250.00 - $200.00 = $50.00

WC Labor WIP Value: decreased by $250.00

Accounting:

DR $200.00 (Labor Usage Var account)

DR $50.00 (Labor Rate Var account)

 CR $250.00 (Labor WIP account) for an inside WC