Variable overhead efficiency variance
If Connie’s Candy produced 2,200 units, they should expect total overhead to be10,400 and a standard overhead rate of4.73 (rounded). In addition to the total standard overhead rate, Connie’s Candy will want to know the variable overhead rates at each...
Variable Cost Explained in 200 Words
All costs that do not fluctuate directly with production volume are fixed costs. Fixed costs include various indirect costs and fixed manufacturing overhead costs. Variable costs include direct labor, direct materials, and variable overhead. Outdoor ...
Absorption costing
Variable costing is generally not used for external reporting purposes. Under the Tax Reform Act of 1986, income statements must use absorption costing to comply with GAAP. Managers use variable costing to determine which products to offer and which ...