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Variable Overhead Variance

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Published on Mar 27, 2012

This lecture is the part of Cost Accounting Lectures Series. In this lecture, we take the Variance Analysis Chapter and topic variable overhead variance. Variable overhead variance formula is little confusing for students. Actually, in this, we do not take standard variable overhead cost. But we take the product of actual production with standard rate of variable overhead per unit. After this, we compare it with actual overhead cost. Difference of both will be our variable overhead variance. It may positive or native. Positive variance will be favorable and negative will show the adverse variance.

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