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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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Balance Sheet Preparation with a Missing Element The following data are available for Schubert Products Inc. as of December 31, 2012. Cash . . . . . . . . . . . . . . . . . . .
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limitations in cost plus pricing
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