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Concept And Formula Of Labor Yield Variance(LYV)

The labor yield variance is one of the components of labor efficiency variance, which results from the difference between actual output of worker and standard output of worker specified. Labor yield variance can be obtained from the difference between the labor mix variance and labor idle time variance.

Formula for the calculation of labor yield variance (LYV)
LYV = (AY - SY) x SC
Where,
AY = Actual yield or output
SY = Standard Yield or output for actual input
SC = Standard cost per unit

If the resulting figure is positive it is denoted as favorable variance and if the resulting figure is negative, it is denoted as unfavorable variance.

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