Then the formulae are hours basis calendar variance

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Then the formulae are: Hours Basis: Calendar Variance = (Revised Budget Capacity hours Budget Hours) x Std. Fixed Overhead rate per hour If revised budgeted capacity hours are more than the budgeted hours, the variance will be favourable. In the reverse situation, the variance will be unfavourable. Output Basis: Calendar Variance = (Revised budgeted quantity in terms of actual number of days worked Budgeted quantity) x Standard fixed overhead rate per unit If revised budgeted quantity is more than the budgeted quantity; the variance is favourable; if revised budgeted quantity is less, the variance will be unfavourable. (9) Fixed Overhead Efficiency Variance: It is that portion of volume variance which arises when actual hours of production used for actual output differ from the standard hours specified for that output. If actual hours worked are less than the standard hours, the variance is favourable and when actual hours are more than the standard hours, the variance is unfavourable. The formula is: Fixed Overhead Efficiency Variance = (Actual hours Standard hours for actual production) x Fixed overhead rate per hour Fixed Overhead Efficiency Variance = (Actual production Standard production as per actual time available) x Fixed overhead rate per unit
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323 (10) Fixed Overhead Capacity Variance: It is that part of fixed overhead volume variance which is due to the difference between the actual capacity (in hours) worked during a given period and the budgeted capacity (expressed in hours). The formula is Capacity Variance = (Actual Capacity Hours Budgeted Capacity) x Standard fixed overhead rate per hour This variance represents idle time also. If actual capacity hours are more than the budgeted capacity hours, the variance is favourable and if actual capacity hours are less than the budgeted capacity hours the variance will be unfavourable. In case actual number of days and budgeted number of days are also given, then budgeted capacity hours will be calculated in terms of actual number of days and it will be known as revised budgeted capacity hours, i.e., budgeted hours in actual days worked. In this situation, the formula for calculating capacity variance will be as follows: Capacity Variance = (Actual Capacity hours Revised Budgeted Capacity hours) x Standard fixed overhead rate per hr. In the above formula, the variance will be favourable if actual capacity hours are more than the revised budgeted hours. However, if actual capacity hours are lesser than the revised budgeted hours, the variance will be adverse as lesser hours means that lesser actual hours have been worked taking the actual days utilised into account. Two-way, Three-way and Four-way Variance Analysis: The above overhead variances are also classified as Two-way, Three-way and Four-way variance.
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