hi sir I do not understand how fixed overhead volume variance is 3000 favourable. i listened your lecture but could not get it. could you please set it out in writting. thanks sir
That is correct and is what I do in the lecture! However that is just the total variable overhead variance and in the exam you can be asked to analyse it (as I do in my lectures).
Quick question we manufactured 8900 units at 5hrs per unit at cost of $5 per labour hour which means the standard labour cost should be 8900*5=44500hrs*$5=$222500 how come you are getting total labour hours of 45400?
The question says that the actual labour hours paid were 45,400, and it is the actual hours paid that we use when calculating the rate of. pay variance.
dear sir why are we taking actual hours worked rather than paid in variable expenditure variance? is the reason because expense is incurred while labour worked.
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hi sir
I do not understand how fixed overhead volume variance is 3000 favourable. i listened your lecture but could not get it. could you please set it out in writting.
thanks sir
sir,i calculated the variable overhead variance like this.please tell me whether it is the right way or not?Thanks in advance
actual variable overheads 87,348
less: actual at standard rate 89,000
(8900*5*2) =1652F
That is correct and is what I do in the lecture! However that is just the total variable overhead variance and in the exam you can be asked to analyse it (as I do in my lectures).
Quick question we manufactured 8900 units at 5hrs per unit at cost of $5 per labour hour which means the standard labour cost should be 8900*5=44500hrs*$5=$222500 how come you are getting total labour hours of 45400?
The question says that the actual labour hours paid were 45,400, and it is the actual hours paid that we use when calculating the rate of. pay variance.
Thanks John
dear sir why are we taking actual hours worked rather than paid in variable expenditure variance? is the reason because expense is incurred while labour worked.
Can I find the list of formulas anywhere for the variances?
No. All the rules are explained in the lectures – better then to write the formulae down yourself 馃檪