Page 46 - UNISA Manac Cost Course Slides Part 1
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TEST 3 - COSTING
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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