See variable manufacturing overhead spending variance.
See variable manufacturing overhead spending variance.
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...
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...
in a standard cost system? Efficiency Right! Rate Wrong. Rate is used interchangeably with price. Spending Wrong. Spending is the price variance associated with variable manufacturing overhead. 11. Which of 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.
See variable manufacturing overhead efficiency variance.
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,...
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...
as the fixed overhead spending variance. Fixed overhead costs are the indirect manufacturing costs that are not expected to change when the volume of activity changes. Some examples of fixed manufacturing overhead...
is a cost variance? What are production costs? What is the coefficient of correlation? What is work-in-process inventory (WIP)? Is rent expense a period cost or a product cost? What are the methods for separating mixed...
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...
center? What is the traditional method used in cost accounting? What is the difference between prime costs and conversion costs? What is variance analysis? What is insurance expense? Are direct costs fixed and indirect...
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.
The actual cost incurred for manufacturing costs other than direct materials and direct labor which increase as production volume increases. Examples include manufacturing supplies and electricity to operate the...
The indirect manufacturing costs that will change in proportion to the change in an activity such as machine hours. For example, a portion of a manufacturer’s electricity cost will vary with the change in the...
The variable manufacturing costs other than direct materials and direct labor that have been assigned to the products manufactured via a predetermined rate. Ideally, by the end of the accounting year the amount applied...
of the lesser quality of materials, this can also mean an unfavorable variable overhead efficiency variance. If the volume of output is curtailed by the quality of the materials, there could possibly be a fixed overhead...
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...
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...
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...
See direct labor efficiency variance and variable manufacturing overhead efficiency variance.
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...
: 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...
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...
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...
How do you determine the fixed portion of overhead cost? Author: Harold Averkamp, CPA, MBA I suggest that the first step in determining the fixed portion of a mixed cost (a cost that is partially fixed and partially...
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...
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...
was more or less than the planned or standard cost per pound The quantity variance identifies whether the actual quantity of the input used was more or less than the planned or standard quantity for the actual output...
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...
(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...
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...
See Explanation of Standard Costing.
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