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Unformatted text preview: standard labor rate. By definition, the variable overhead volume variance is always zero. The variable overhead efficiency variance can really be a reflection of the efficiency of the application base, rather than overhead spending/consumption itself. If actual fixed overhead is less than budgeted fixed overhead, a favorable fixed overhead spending variance results. When fixed overhead variances are recorded in the journal, Work in Process is debited for the budgeted fixed overhead amount....
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This note was uploaded on 02/29/2012 for the course ACCOUNTING 101 taught by Professor Hudack during the Spring '11 term at FIU.
- Spring '11