Operations / Workforce
Earned (Standard) Hours & Labor Variance
How many hours the output SHOULD have taken at standard versus how many it actually took, and the cost of the gap, split into how fast people worked and what they were paid.
The fork, why two teams get different numbers
Earned hours (output × the standard hours per unit) is compared against actual hours to get labor efficiency, this is the same efficiency that feeds APICS rated capacity and mirrors the OEE performance factor, yet the three are computed on different bases and rarely reconciled.
In the Metric Library
- The full fork, both definitions worked all the way through
- The trap that makes the number lie, on a real export
- Every formula variant, spelled out
- The reconciliation anchor, what to tie it to and when to refuse
Reference: standard-cost accounting (IMA rate & efficiency variances) · industrial-engineering standard hours · APICS/ASCM