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

mighty18

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

Tii_Zahra

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.