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Fixed overhead volume variance help

daniel489daniel489 Registered Posts: 14
I am having some trouble figuring out this question. Can anybody help? The answer is 120,000 adverse but I cannot figure out how to get it it.


Comments

  • BlueJeansBlueJeans LondonRegistered Posts: 56
    Hi Daniel

    OAR=Budg. Overh./ budg. output so : OAR= £1200000/60000 units=20
    than Volume= OAR( AOUT - BOUT) so
    Volume=20( 54000-60000)= 120000 Adverse
    Believe you can and you're halfway there...
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