Total variable overheads variances, Cost Accounting

Total Variable Overheads Variances

 If Variable Overhead Expenditure Variance =  Shs.1, 330

Variable Overhead Efficiency Variance = Shs.320

Then total variable overheads variances is:

 

= Variable Overhead Expenditure Variance + Variable Overhead Efficiency Variance

= Shs.1, 330 (U) + Shs.320 (F) = Shs.1, 010 (U)

It can also be directly obtained with calculating the difference between the production cost absorbed and the actual variable overheads costs incurred in variance overheads as:

That is shs.13, 930 - (3,230 x 4) = Shs.13, 930 - Shs.12,920

                                                = Shs.1, 010 (U)

Posted Date: 2/7/2013 7:17:22 AM | Location : United States







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