When actual labor is reported on operations, where does the variance between the actual Labor and estimate from the BOM show in the GL?
It doesn’t since the estimate is never recorded in the ledger.
This also depends on the costing method you are using. If you are using Standard Costing, and there is a difference between the actual cost and the standard cost, you will create a Manufacturing Variance which will be recorded in the GL. Any other costing method will not create the variance for this situation.
Charlie
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