Variable overhead expenditure variance, Cost Accounting

Variable Overhead Expenditure Variance

Budget for December 2003;


Fixed Overheads


Variable Overheads


Labour Hours

3,280 hours

Standard Hours of Production

3,280 hours

Actual Results for December 2003


Fixed Overheads


Actual Variable Overheads


Actual Labour Hours


Standard Hours of Production

3,280 hours

= Actual Variable Overheads - (Actual labour hours x V.O.A.R)                         

= Shs.13, 930 - (3,150 x 4)

= Shs.13, 930 - Shs.12,600

=   Shs.1, 330 Unfavourable

The variance is unfavourable since we spent more than allowed.

Posted Date: 2/7/2013 7:08:50 AM | Location : United States

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