Explain what is Overhead Variance

September 23rd, 2007 Comments off
Share |

OVERHEAD VARIANCE is The DIFFERENCE between the Actual Overhead Incurred and the amount of overhead absorbed to production through the use of a standard overhead rate.

- For the VARIABLE overhead, the standard rate is computed by taking the budgeted variable overhead of the period divided by the budgeted volume for the period.

- For the FIXED overhead, the standard rate is computed by taking the budgeted fixed overhead of the period divided by the budgeted volume for the period.

Comments are closed now.

Financial Accounting

 
 

Advertise Here | Brain Teasers/Puzzles | Greeting Cards | Inspirational Quotes | Jokes/Humor | Useful Links | Motivational Stories | Resource | Shopping | Share/Express Your Views | Testimonials | Universities/Colleges | Words of Wisdom from Religions | FREE POSTING OF ACCOUNTING & FINANCE JOBS VACANCY|