volume variance relates to Fixed cost absorption, where as controllable variances arise due difference in actual variable spending per activity measure.
cheatFAIL
Manufacturing cost is variable cost.
True
it doens't
volume variance relates to Fixed cost absorption, where as controllable variances arise due difference in actual variable spending per activity measure.
The two types of overhead are fixed overhead and variable overhead. Fixed overhead remains constant regardless of production levels, while variable overhead fluctuates in direct proportion to production activity.
The difference between fixed overhead and variable overhead is that fixed overheads are the ones that do not change regardless and variable overheads are the ones that vary depending on the number of units that it produces. An example of fixed overhead is a managers salary.
Variable manufacturing overhead cost per direct labor hour means the variable overhead cost spent for one single labor hour and formula is as follows:Variable overhead cost per labor hour = total variable overhead cost / Total direct labor hours
cheatFAIL
Act. Hr x (Std. Rate - Act. Rate) actual hours times standart rate minus actual rate
A cost that is not fixed.
Manufacturing cost is variable cost.
True
it doens't
variable costing
Compute the actual and budgeted manufacturing overhead rate