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Fixed Overhead Variance Analysis

Fixed Overhead Variance Analysis - in the denominator of...

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Fixed Overhead Variance Analysis - Fixed Overhead Variances o Budget Variances = Actual FOH – Budgeted FOH POHR = Budgeted MOH/Budgeted level of activity Important to separate into Fixed POHR and Variable POHR Denominator Level of Activity – Budgeted level of activity takes place
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Unformatted text preview: in the denominator of the equation Why do we calculate Fixed POHR? Because you need that to determine VOLUME VARIANCE o Volume Variances = Fixed portion of POHR* (Denominator level of activity – Standard level of activity)...
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