Sir , please Kindly tell what is the logic behind calculating only fixed overhead expenditure variance under marginal costing principles.
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Fixed overhead expenditure variance(under Marginal costing principles)
7y ago#1Because fixed overheads do not change with the level of production and so the only reason for them being different from the budget figure is because the total expenditure changed.
I do explain this in my lectures on variances and the lectures on marginal and absorption costing.
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