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Unformatted text preview: 2. Select cost-allocation base 3. Identify variable overhead costs 4. Compute the rate per unit of each cost-alloc base Developing Budgeted fixed overhead allocation rates: 1. Choose Time period (there is no flexing of FMOH) 2. Select cost-allocation base (there is no sales-vol var) 3. Identify FOHC (there is no efficiency variance) 4. Compute the rate per unit of each cost-alloc base Interpreting production-volume variance Mgmt may have maintained some extra capacity Production volume variance focuses only on costs 4: VMOHyyn,FMOHyny;Spending;Efficiency;Prod-vol 3: Tot MOH; Spending; Efficiency; Prod-vol 2: Tot MOH; Flex-budget; prod-volume 1: Tot MOH; tot OH variance...
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This note was uploaded on 04/07/2008 for the course ACCTG 311 taught by Professor Ducharme during the Spring '08 term at University of Washington.
- Spring '08