Overhead variance – meaning and formula

OVERHEAD COST VARIANCE - MEANING AND FORMULA

Overhead is the aggregate of indirect material cost, indirect wages (indirect labour cost) and indirect expenses. Thus, overhead costs are indirect costs and are important for the management for the purposes of cost control. read more

Variable overhead variance – meaning, causes and formula.

Variable overhead variance - meaning, causes and formula.

Variable overhead variance: Variable overheads vary directly with the volume of output and hence, the standard variable overheads very directly with the volume of output and hence, the standard variable overhead rate remains uniform. Therefore, computation of variable overhead variance, also known as variable overhead cost variance parallels the material and labour cost variances. read more