A variance arising in a standard costing system that indicates the difference between the actual amount of fixed manufacturing overhead incurred and the budgeted amount of fixed manufacturing overhead. To learn more, see...
A variance arising in a standard costing system that indicates the difference between the actual amount of fixed manufacturing overhead incurred and the budgeted amount of fixed manufacturing overhead. To learn more, see...
See variable manufacturing overhead spending variance and fixed manufacturing overhead budget variance. To learn more, see Explanation of Standard Costing.
Our Explanation of Standard Costing uses an easy-to-relate to example for illustrating a manufacturer's standard costs and variances. Also provided is a chart which indicates each variance, what it tells you, and where...
What causes an unfavorable fixed overhead budget variance? Author: Harold Averkamp, CPA, MBA An unfavorable fixed overhead budget variance results when the actual amount spent on fixed manufacturing overhead costs...
Also referred to as the fixed overhead spending variance. The difference between the actual fixed overhead incurred and the amount of fixed overhead that had been budgeted.
reclassified to arrive at actual cost? What is the materials usage variance? What is a fixed cost? What is the meaning of fixed overhead absorbed? What is a flexible budget variance? What is a learning curve? Is...
period costs? Why is manufacturing overhead allocated to products? What do overabsorbed and underabsorbed mean? Are insurance premiums a fixed cost? What is an indirect cost? What causes an unfavorable fixed overhead...
A variance arising in a standard costing system that indicates the difference between the standard amount of fixed manufacturing overhead for the good units produced (standard hours times standard rate) and the budgeted...
materials is used. Finished Goods Wrong. 13. If the amount of a company's good output is less than the amount required to absorb its fixed manufacturing overhead costs, which variance will be unfavorable? Budget...
is an incremental cost? What is the contribution margin ratio? What is managerial accounting? What is hurdle rate? What are indirect manufacturing costs? What is relevant range? What do negative variances indicate? What...
but actual SG&A expenses were $232,000. The result was a favorable SG&A expense budget variance of $8,000. Manufacturing overhead costs were budgeted to be $400,000 but were actually $393,000. The result was a...
Direct labor: a standard quantity of labor and a standard cost per hour of labor Manufacturing overhead: a budget for the fixed overhead, the standard variable overhead rate, and the standard quantity for applying a...
: The manufacturer’s budgeted amount of fixed manufacturing overhead costs The amount of the fixed manufacturing overhead costs that were assigned to (or absorbed by) the company’s good output Example of Production...
or allocated to the products manufactured. This is often done by using a predetermined overhead rate. The predetermined rate is likely based on the amount from the annual manufacturing overhead budget divided by some...
The fixed manufacturing costs (e.g., property tax, rent, and depreciation on factory) that have been assigned to (absorbed by) the products manufactured via a predetermined rate. Ideally, by the end of the accounting...
The actual cost incurred for manufacturing costs that does not change as production volume changes. Examples include the property tax, rent, and depreciation of the factory building and equipment, and the salaries of the...
What does an unfavorable volume variance indicate? Author: Harold Averkamp, CPA, MBA An unfavorable volume variance indicates that the amount of fixed manufacturing overhead costs applied (or assigned) to the...
Also referred to as the fixed overhead budget variance. The difference between the actual fixed overhead incurred and the amount of fixed overhead that had been budgeted.
Our Explanation of Standard Costing uses an easy-to-relate to example for illustrating a manufacturer's standard costs and variances. Also provided is a chart which indicates each variance, what it tells you, and where...
overhead spending and budget variances, and the production volume variance are generally not related to the efficiency of the operations. On the other hand, the materials usage variance, the labor efficiency variance,...
(salaries, utilities, etc.) of $350,000 + variable expenses (cartons, helpers, etc.) of $162,000 (54,000 items X $3 each) = total flexible budget of $512,000. Flexible Budget Variance Now let’s assume that the...
Our Explanation of Standard Costing uses an easy-to-relate to example for illustrating a manufacturer's standard costs and variances. Also provided is a chart which indicates each variance, what it tells you, and where...
A variance arising in a standard costing system that indicates the difference between the actual variable manufacturing costs incurred and the expected variable manufacturing overhead costs based on some activity such as...
A variance arising in a standard costing system that indicates the difference between the standard amount of variable manufacturing overhead for the good units produced (standard hours times standard rate) and the...
Can absorption costing cause an increase in net income? Author: Harold Averkamp, CPA, MBA Definition of Absorption Costing Absorption costing is a cost accounting method (required by US GAAP) in which a manufacturer must...
What is the meaning of fixed overhead absorbed? Author: Harold Averkamp, CPA, MBA Definition of Fixed Overhead Absorbed Fixed overhead absorbed refers to a manufacturer’s fixed indirect manufacturing/production...
Our Explanation of Standard Costing uses an easy-to-relate to example for illustrating a manufacturer's standard costs and variances. Also provided is a chart which indicates each variance, what it tells you, and where...
What is a fixed budget? Author: Harold Averkamp, CPA, MBA Definition of Fixed Budget A fixed budget is a budget that does not change or flex for increases or decreases in volume. (“Volume” could be sales, units...
The difference between the actual amount and the budgeted amount.
What is a budget variance? Author: Harold Averkamp, CPA, MBA A budget variance results when an actual amount is different from a planned or budgeted amount. A budget variance can occur for revenues and for expenses. Join...
What is the difference between normal costing and standard costing? Author: Harold Averkamp, CPA, MBA Definition of Normal Costing Normal costing for manufactured products consists of following: Actual cost of materials...
What is the death spiral? Author: Harold Averkamp, CPA, MBA Definition of Death Spiral In cost accounting and managerial accounting, the term death spiral refers to the repeated elimination of a manufacturer’s products...
manufacturing overhead costs. Reasons for Allocating Manufacturing Overhead to Products US GAAP and US income tax regulations require manufacturers to assign variable and fixed manufacturing costs to the products they...
Manufacturing Overhead Quiz and Test | AccountingCoach Manufacturing Overhead(Practice Quiz) Download PDF Author: Harold Averkamp, CPA, MBA For multiple-choice and true/false questions, simply press or click on what...
Manufacturing costs other than direct materials and direct labor. To learn more about manufacturing overhead, see our Manufacturing Overhead Outline.
The situation where a company has assigned less manufacturing overhead than the amount actually incurred.
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