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OVERHEAD VARIANCES
Unlike labour and direct material, the manufacturing overhead is not completely variable with the level of production. So, standard costs for factory overheads are based upon budgets rather than standards. These variances happen due to the differences between the standard overhead cost charged and the actual overhead cost incurred to production. There are two components to overhead variances -
i) Fixed Overhead Variances and
ii) Variable Overhead Variances
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I''m about to take my first cost accounting class in college, Do i need algebra skills to do well on this class
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