Variable overhead variance (vohv), Cost Accounting

Variable Overhead Variance (VOHV)

VOHV is defined by ICMA, London, as 'the variation between the standard variable production overhead absorbed in the production achieved, whether completed or not, and the actual production overhead'.  This variance can be split into 2 parts -

i)  Variable Overhead Efficiency Variance and

ii)  Variable Overhead Expenditure Variance.

VOHV=  (Actual hours worked x Standard variable overhead rate per hour)- Actual variable over heads

i) Variable overhead variance

It is the variation between actual overhead expenditure incurred and the standard variable overheads set in for a particular period.

Variable overhead variance = (Standard variable overhead) - (Actual variable overhead)

ii) Variable Overhead Efficiency Variance

It defines the effect of change in labour efficiency overheads recovery.

Variable Overhead Efficiency Variance = Standard rate (Standard quantity - Actual quantity) where Standard rate = (Standard time for actual output - Actual time)

Posted Date: 10/15/2012 7:36:23 AM | Location : United States







Related Discussions:- Variable overhead variance (vohv), Assignment Help, Ask Question on Variable overhead variance (vohv), Get Answer, Expert's Help, Variable overhead variance (vohv) Discussions

Write discussion on Variable overhead variance (vohv)
Your posts are moderated
Related Questions
Identify and explain many classification of costs for planning, control, performance evaluation and decision making.

What is the easiest of calculate equivalents before producing a process account 2


Determine whether process is under control: Hall's refrigeration and heating company is concerned about complaints from their customers about some of their technicia

Build-Rite construction has received favorable publicity from guest appearances on a public TV home improvement program. Public TV programming decisions seem to be unpredictable, s

Which of the following are easy to trace to individual jobs?:   A. direct materials and overhead B. direct materials and direct labor C. direct labor and overhead

what is the purpose of cost accounting and its nat ure?

What type of activity could a company engage in to improve their cash flows in their Cash Flows Statement? Is this ethical? Could borrowing money make the cash from operations be


what is the importance and assumptions of application of marginal costing