TOTAL LABOR VARIANCE. · It is the difference between the standard labor cost for the actual production and the actual costs.
· This variance consists of two part namely:
( Wage RATE Variance )
And
( Labor EFFICIENCY Variance) 
Wage RATE Variance The result of paying an actual rate of labor at an ACTUAL price that is different from the STANDARD price. 
Probable Causes Of Wage Rate Variance:
Purpose of this variance:

Formula for Wage RATE Variance 
Wage Rate Variance = (Actual rate per hourStandard rate per hour) x Actual hours worked 
Labor EFFICIENCY Variance

Probable Causes Of Labor EFFICIENCY Variance:
Purpose of this variance:

Formula for Labor EFFICIENCY Variance 
Labor EFFICIENCY Variance = (Actual hours work less Standard hours allowed) x Standard rate per hour. 
Illustration Of Total Labor Variance 
Example: Details of standard Labor cost for Product A: Standard wage rate $0.60 Standard hour needed 2 hours For month of June Actual as follows: Production of Product A 100 units Actual wage rate $0.70 & actual hours needed 220 hours Solution Total Labor Cost Variance = Actual cost (220 x $0.70 ) =$154 Standard cost (200 x $0.60) =$120 Total Labor Cost Variance =$34 ADVERSE variance Total labor cost variance = Wage rate variance + Labor efficiency variance ( refer below) (a) To compute Wage RATE variance= (Actual rate/hour less Standard rate/hr) x Actual hour worked =($0.70$0.60) x220 = $22 ADVERSE variance (b) To compute Labor EFFICIENCY variance= (Actual hours worked less Standard hours allowed) x Standard rate/hr =(220200) x $0.60 = $12 ADVERSE variance Total Labor Cost Variance = Wage RATE variance + Labor EFFICIENCY variance = $22(adverse) +$12(adverse) = $34(adverse) 