Problem

From the following data, calculate overhead variances of following:

(a) Variable overhead expenditure variance
(b) Fixed overhead expenditure variance
(c) Total overhead cost variance
(d) Fixed overhead Capacity variance
(e) Fixed Overhead Calendar Variance
(f) Fixed overhead efficiency variance

                                                                   Budgeted             Actual

Output                                                         15,000 units        16,000 units
Number of working days                                    25                      28
Fixed overheads                                           Rs. 30,000           Rs. 30,500
Variable overhead                                        Rs. 45,000           Rs. 47,000
There was an increase of 5% in capacity.

• Calculation of standard rate for fixed overhead and variable overhead
• Variable overhead expenditure variance
• Fixed overhead expenditure variance
• Total overhead cost variance
• Fixed overhead Capacity variance
• Fixed Overhead Calendar Variance
• Fixed overhead efficiency variance
• Formulas and steps