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Variable overhead spending refers to the costs incurred by a company that vary with production levels, such as utilities, indirect materials, and supplies. Unlike fixed overhead costs, which remain constant regardless of output, variable overhead costs fluctuate based on the volume of goods produced. Effective management of variable overhead spending is crucial for maintaining profitability and operational efficiency, as it directly impacts overall production costs. Companies often analyze these costs to identify areas for potential savings and to improve budgeting accuracy.
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If the controllable overhead variance is favorable the overhead volume variance?
volume variance relates to Fixed cost absorption, where as controllable variances arise due difference in actual variable spending per activity measure.
The difference between variable factory overhead incurred and total standard variable factory overhead based on the actual quantity of the cost driver for applying the overhead is the?
cheatFAIL
Is Manufacturing cost is overhead or variable?
Manufacturing cost is variable cost.
Is overhead spending variance affected by excessive usage or waste of overhead materials?
True
How does the planning of fixed overhead costs differ from the planning of variable overhead costs?
it doens't
If the controllable overhead variance is favorable the overhead volume variance?
volume variance relates to Fixed cost absorption, where as controllable variances arise due difference in actual variable spending per activity measure.
What are the two types of overhead?
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.
What is difference between fixed overhead and variable overhead?
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?
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
The difference between variable factory overhead incurred and total standard variable factory overhead based on the actual quantity of the cost driver for applying the overhead is the?
cheatFAIL
What is variable manufacturing overhead spending variance?
Act. Hr x (Std. Rate - Act. Rate) actual hours times standart rate minus actual rate
What is variable overhead?
A cost that is not fixed.
Is Manufacturing cost is overhead or variable?
Manufacturing cost is variable cost.
Is overhead spending variance affected by excessive usage or waste of overhead materials?
True
How does the planning of fixed overhead costs differ from the planning of variable overhead costs?
it doens't
What costing method considers variable factory overhead a product cost?
variable costing
What is the relationship between the variable overhead efficiency variance and the labor efficiency variance?
The variable overhead efficiency variance and the labor efficiency variance are closely related as both assess the efficiency of resource utilization in production. The labor efficiency variance measures how effectively labor hours are used compared to what was expected, while the variable overhead efficiency variance evaluates the efficiency of variable overhead costs in relation to actual labor hours. Since variable overhead costs often depend on labor hours, inefficiencies in labor can directly impact variable overhead efficiency, making these variances interconnected in analyzing overall production performance.
