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Standard costing

Variable overhead variances

6.1 Calculations

AHAR

Expenditure variance

AHSR Total variance

Efficiency variance

SHSR

There is no need to worry about idle time. The hours here, are the hours worked.

Unless told otherwise, assume that the hours used are the same as the labour hours.

Illustrations and further practice

Now try TYU question 7 from Chapter 15.

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