Difference between revisions of "Variable overhead efficiency variance"
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According to [[Cost Accounting by Horngren, Datar, Rajan (14th edition)]], | According to [[Cost Accounting by Horngren, Datar, Rajan (14th edition)]], | ||
:[[Variable overhead efficiency variance]]. The difference between the actual quantity of variable overhead cost-allocation base used and budgeted quantity of variable overhead cost-allocation base that should have been used to produce actual output, multiplied by budgeted variable overhead cost per unit of cost allocation base. | :[[Variable overhead efficiency variance]]. The difference between the actual quantity of variable overhead cost-allocation base used and budgeted quantity of variable overhead cost-allocation base that should have been used to produce actual output, multiplied by budgeted variable overhead cost per unit of cost allocation base. | ||
| + | According to [[Managerial Accounting by Braun, Tietz (5th edition)]], | ||
| + | :[[Variable overhead efficiency variance]]. This variance tells managers how much of the total variable MOH variance is due to using more or fewer hours of the allocation base (u sually machine hours or DL hours) than anticipated for the actual volume of output. It is calculated as follows: SR X (AH - SHA). | ||
| − | [[Category: Accounting]][[Category:Articles]] | + | [[Category: Accounting]][[Category:Articles]] |
Latest revision as of 19:49, 16 July 2020
Variable overhead efficiency variance is the difference between the actual quantity of variable overhead cost-allocation base used and budgeted quantity of variable overhead cost-allocation base that should have been used to produce actual output, multiplied by budgeted variable overhead cost per unit of cost allocation base.
Definitions
According to Cost Accounting by Horngren, Datar, Rajan (14th edition),
- Variable overhead efficiency variance. The difference between the actual quantity of variable overhead cost-allocation base used and budgeted quantity of variable overhead cost-allocation base that should have been used to produce actual output, multiplied by budgeted variable overhead cost per unit of cost allocation base.
According to Managerial Accounting by Braun, Tietz (5th edition),
- Variable overhead efficiency variance. This variance tells managers how much of the total variable MOH variance is due to using more or fewer hours of the allocation base (u sually machine hours or DL hours) than anticipated for the actual volume of output. It is calculated as follows: SR X (AH - SHA).
