The variances can be calculated in total for variable and fixed costs

The variances can be calculated in total for variable and fixed costs

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The variances can be calculated in total for variable and fixed costs, in which case the variances are  referred to as the controllable (price) variance and the volume variance. Alternatively, the variances  can be calculated separately for variable manufacturing overhead costs and fixed manufacturing  overhead costs. The variable overhead cost variances are called the spending (rate) variance and 
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Unformatted text preview: the efficiency variance, and fixed overhead cost variances are known as the spending and volume variances. The variable overhead cost spending variance, the variable overhead cost efficiency variance, and the fixed overhead cost spending variance added together are the same as the controllable variance....
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