Scribd Logo
Upload

Welcome to Scribd!

  • Factory overhead variance analysis

    Uploaded by

    Ali
    40 views2 pages
    The document discusses factory overhead variance analysis, including calculations for total factory overhead variance, idle capacity/volume variance, and expenditure/spending/budgeted variance. It provides the formulas to calculate actual factory overhead, applied factory overhead, budgeted factory overhead for capacity attained, factory overhead applied rate, fixed overhead rate, variable overhead rate, and estimated variable factory overhead.

    Original Description:

    Factory Overhead Variance

    Original Title

    Factory Overhead Variance

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    The document discusses factory overhead variance analysis, including calculations for total factory overhead variance, idle capacity/volume variance, and expenditure/spending/budgeted variance. It provides the formulas to calculate actual factory overhead, applied factory overhead, budgeted factory overhead for capacity attained, factory overhead applied rate, fixed overhead rate, variable overhead rate, and estimated variable factory overhead.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    40 views2 pages

    Factory overhead variance analysis

    Uploaded by

    Ali
    The document discusses factory overhead variance analysis, including calculations for total factory overhead variance, idle capacity/volume variance, and expenditure/spending/budgeted variance. It provides the formulas to calculate actual factory overhead, applied factory overhead, budgeted factory overhead for capacity attained, factory overhead applied rate, fixed overhead rate, variable overhead rate, and estimated variable factory overhead.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 2

    B.

    Com Part 2
    Khan Degree College, Wzd.

    Cost Accounting

    Govt. M. Z. A.

    Factory Overhead Variance


    Total FOH Variance / Overall
    Variance
    Actual Factory Overhead
    xxxx
    Less:
    Applied FOH
    xxxx
    Underapplied (+) / Overapplied
    (-)

    Idle Capacity / Volume Variance


    Applied Factory Overhead
    xxxx
    Less: Budgeted FOH for capacity
    attained xxxx
    Favourable (+) / Unfavourable (-)

    Expenditure / Spending / Budgeted


    Variance

    Budgeted FOH for capacity


    attained xxxx
    Less: Actual FOH
    xxxx
    Favourable (+) / Unfavourable (-)

    Actual Factory Overhead = Fixed FOH + Actual Variable FOH


    Absorbed / Applied Factory Overhead = Capacity Attained x FOH applied rate
    Budgeted FOH for capacity attained = Fixed FOH + (Capacity attained x Variable Rate)
    Other / Supporting Calculations:
    FOH applied rate
    Fixed rate
    Variable rate
    activity level

    =
    =
    =

    Estimated FOH Estimated Volume


    Fixed FOH Estimated Volume

    OR

    Estimated variable FOH Estimated Volume

    Fixed rate + Variable rate

    OR

    Change in Est. FOH Change in

    B.Com Part 2
    Khan Degree College, Wzd.

    Cost Accounting

    Govt. M. Z. A.

    Fixed FOH for 1 month=


    Estimated Volume
    =
    Budgeted Fixed FOH =

    Estimated Fixed FOH 12 months


    Estimated FOH (Fixed/Variable) FOH rate (Fixed/Variable)
    Est. Total FOH Est. Variable FOH

    Est. Variable FOH


    Variable rate

    Est. Activity level X (FOH applied rate X Variable %age)

    OR

    Est. Activity level X

    You might also like