Variances occur when there are differences between the budgeted costs and the actual costs.

Variances occur when there are differences between the budgeted costs and the actual costs. When are labour cost variances likely to arise?

When the sales prices change over time due to inflation

When there is more overtime than is expected

When a different wage grade of worker is used to complete a task than was planned for

When the supplier changes from manual to electronic invoicing systems for all transactions