Problem
From the following data, calculate overhead variances of following:
(a) Variable overhead expenditure variance
(b) Fixed overhead expenditure variance
(c) Total overhead cost variance
(d) Fixed overhead Capacity variance
(e) Fixed Overhead Calendar Variance
(f) Fixed overhead efficiency variance
Budgeted Actual
Output 15,000 units 16,000 units
Number of working days 25 28
Fixed overheads Rs. 30,000 Rs. 30,500
Variable overhead Rs. 45,000 Rs. 47,000
There was an increase of 5% in capacity.
- Calculation of standard rate for fixed overhead and variable overhead
- Variable overhead expenditure variance
- Fixed overhead expenditure variance
- Total overhead cost variance
- Fixed overhead Capacity variance
- Fixed Overhead Calendar Variance
- Fixed overhead efficiency variance
- Formulas and steps