Budgeted/Standard/ overheads

System

I would appreciate any guidance on remembering the difference between budgeted production overheads and standard/actual fixed overhead absorbed. Basically any help on overheads! I seem to have a mental block.

Rubio :?

System

Re:Budgeted/Standard/ overheads

There is a brilliant way of learning the variances on the MSN AAT forum known as PURE AS - worth a look, I have found it really helpful
http://groups.msn.com/AATTechnician/general.msnw?action=get_message&mview=0&ID_Message=347&LastModified=4675564071810667295

best of luck
Eva

System

Re:Budgeted/Standard/ overheads

The budgeted overheads would have been worked out (as you did at intermediate level). From our point of view in terms of control these overheads are made up of

BUDGETED UNITS which when multiplied by

standard hours per unit

=the budgeted total hours, which when you multiply by

the overhead absorption rate per hour, will give you

the total budgeted overhead cost

The standard overhead cost of actual production has a remarkably similar sequence

ACTUAL UNITS produced which when multiplied by

standard hours per unit

=the total standard hours, which when you multiply by

the overhead absorption rate per hour, will give you

the total standard overhead cost of what we

actually produced

The only other costs you would need to calculate would be

Standard cost of the actual hours worked

the actual total overhead incurred

System

Re:Budgeted/Standard/ overheads

Hi Eva,

Thanks for that.

Rubio

System

Re:Budgeted/Standard/ overheads

Hi Sandy

The old brains gets blocked every now and again. Thanks for the help, that seems to have jogged the memory.

Rubio