Page 41 - 5.2 i. Manac Costing ITC Summarised Notes
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ITC EXAM PREP
Costing variances – example 1
End of period:
Expenditure variance = Actual overhead – Budgeted overhead
= R231 000 – R200 000
= R31 000 unfavourable
Over/under recovery = Budgeted overhead – Absorbed overhead
(volume variance) = R200 000 – RR210 000
= R10 000 over recovery (favourable)
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