Fixed Overhead Variance

In a standard costing accounting system, fixed manufacturing overhead has two main variances budget and volume. Fixed overheads are those costs which do not vary in response to the level of production output. To operate a standard costing system and allocate fixed overhead, the business must first decide on the basis of allocation, and calculate the standard fixed overhead allocation rate.

Fixed Overhead Variance November 6th, 2016Team
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Variable Overhead Variance

In a standard costing accounting system, variable manufacturing overhead has two main variances rate and efficiency. Variable overheads are those costs which vary in response to the level of production output but which cannot be attributed to individual units of production. To operate a standard costing system and allocate variable overhead, the business must first decide on the basis of allocation.

Variable Overhead Variance November 6th, 2016Team
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Direct Labor Variance Journal

In a standard costing accounting system, direct labor has two main variances price and efficiency. Unlike direct materials, direct labor is used at the same time as it is purchased, and therefore the price and efficiency variances occur at the same time on the same production run, and a single journal is needed post the variances together with the standard and actual cost to the accounting system.

Direct Labor Variance Journal November 6th, 2016Team
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Direct Labor Efficiency Variance

The direct labor efficiency variance is one of the main variances used in standard costing and represents the difference between the standard quantity of labor and the actual quantity of labor used, multiplied by the standard labor rate.

Direct Labor Efficiency Variance November 6th, 2016Team
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Direct Labor Price Variance

The direct labor price variance sometimes referred to as the direct labour rate variance, is one of the main variances used in standard costing and represents the difference between the standard labor rate and the actual labor rate, multiplied by the number of units of labor used.

Direct Labor Price Variance November 6th, 2016Team
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Direct Materials Quantity Variance

The direct material quantity variance is one of the main variances used in standard costing and represents the difference between the standard material quantity and the actual material quantity, multiplied by the standard price per unit.

Direct Materials Quantity Variance November 6th, 2016Team
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Direct Materials Price Variance

The direct materials price variance is one of the main variances used in standard costing and represents the difference between the standard material unit price and the actual material unit price, multiplied by the quantity of units used.

Direct Materials Price Variance November 17th, 2016Team
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Standard Costing and Variance Analysis

This tutorial deals with standard costing and variance analysis which is used by management to the monitor business performance against predetermined standard costs using variance reports. Standard costing is also a useful tool for valuing inventory and providing estimated selling prices to customers.

Standard Costing and Variance Analysis November 6th, 2016Team
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