Can someone explain what fixed overhead variances are about? They are different

They are treated differently, to materials, labour & variable production. I'm thinking of, expenditure & volume and not volume-capacity/efficiency

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  • Tii_ZahraTii_Zahra Posts: 3Registered
    Hi,
    This might not be the answer you're after but here's some of formula's on fixed overhead.

    Fixed Overhead Expenditure : Actual - Budget
    Fixed Overhead Volume : Budget - SH * SR (Standard Hour * Standard Rate)
    Fixed Overhead Capacity : Budget - AH * SR (Actual Hour * Standard Rate)
    Fixed Overhead Efficiency: AH * SR - SH * SR (Standard Hour * Standard Rate)
    Fixed Overhead : Actual - SH * SR (Standard Hour * Standard Rate)

    Hope this helps.
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