Unformatted text preview: 3) The activity base should be simple and easily understood Variable Overhead Variances – A Closer Look Actual vs. Standard Hours-Spending Variance Overhead Rates and Fixed Overhead Analysis Predetermined Overhead Rate = Estimated total MOH cost / estimated total allocation base Fixed Overhead Variances -For Manufacturing Overhead Applied overhead costs = standard hours allowed x POR Budget Variance – Difference between actual fixed OH costs and original budgeted fixed overhead costs Budget Variance = Actual fixed OH costs – Budgeted fixed OH costs Volume Variance – Measure of facility utilization Fixed Component of POR x (Denominator hours – Std. hours allowed)...
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- Spring '08
- overhead costs, overhead costs budget, variable overhead costs, Overhead Analysis Flexible, Fixed Overhead Analysis