Occurrence of overhead variances, Cost Accounting

Occurrence of Overhead Variances

Overhead variances arise mainly because of the conventions of the overheads absorption process. The overhead absorption rates employed in this process are calculated from two major estimates as:

i. Estimates of expenditure levels.

ii. Estimates of the activity levels throughout the budget period.

Because the two elements are mere estimates, they hardly coincide along with reality, and hence will almost certainly purpose a favourable or unfavourable variance in any type of given accounting period. Overhead variances are caused via efficiency variations also. Since overheads are frequently absorbed efficiency is less or greater than planned.

Posted Date: 2/7/2013 7:36:43 AM | Location : United States







Related Discussions:- Occurrence of overhead variances, Assignment Help, Ask Question on Occurrence of overhead variances, Get Answer, Expert's Help, Occurrence of overhead variances Discussions

Write discussion on Occurrence of overhead variances
Your posts are moderated
Related Questions
Portions of the financial statements for Hawkeye Company are provided below. HAWKEYE COMPANY Income Statement For the Year Ended December 31, 2013 Sales $ 850 Cost of goods sold (3

The Bloomington Electric Company operates in a stable industry and therefore has predictable dividend growth of 8% per year. The most recent annual dividend was paid yesterday in t

Bickering Ltd Income Statement for the year ended 30 June 2012   Sales (credit)                                                                           636,10

Limitations of Budgeting 1. Too mush reliance may reason resistance or inflexibility to change. 2. Difficult to set levels of attainment. It may result into too tight budg

How would I calculate the debt amortization for a bond issued at discount with a maturity of 12 years, market interest rate at issue 10% annually, 5% semi annually, and has a state

Logan Corporation issued $800,000 of 8% bonds on October 1, 2006, due on October 1, 2011. The interest is to be paid twice a year on April 1 and October 1. The bonds were sold to y

Methods of Labour Remuneration There Labour remuneration methods can be broadly classified into two factors as: i. Time rate or on the basis of the time spend in the factor

Semi Fixed Costs Are costs along with both a variable and fixed cost component? The fixed component is such portion that is constant irrespective of the level of activity. The

Variable Overhead Expenditure Variance Budget for December 2003; Shs. Fixed Overheads 11,480 Variable Ov

the features and scopes of job costing