variance analysis

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April 15, 2015 at 9:13 pm #241447
Mariam
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hello i have a question, when your asked to find fixed O/H capacity variance and there is no mention of actual hours worked or budgeted hours worked, is it correct to say that it is NIL?
April 16, 2015 at 7:25 am #241473
John Moffat
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You cannot say that it is nil.

You cannot be asked for the capacity and efficiency variances unless the information about hours is available in one way or another – you could only be asked for the volume variance.
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