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-   -   What is the overhead variance (https://www.askmehelpdesk.com/showthread.php?t=721217)

  • Dec 6, 2012, 09:32 PM
    silsilajan
    What is the overhead variance
    I have a question please help me with this.
    Budgeted production 10,000 units
    Actual production 15,000 units
    Budgeted overhead cost $60,000
    What is the overhead variance? Is it favorable or unfacorable?
  • Dec 6, 2012, 09:45 PM
    paraclete
    It isn't a question of favourable or unfavourable because you have nothing to compare it to. All you have is a variation in the number of units of production. We don't know if the overhead is variable or fixed or mixed so we cannot calculate a variance. If it entirely variable there is no variance. Read the book.

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