Page 118 - P1 Integrated Workbook STUDENT 2018
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Chapter 7
Fixed overhead variances
6.1 Calculations
Expenditure variance
= budgeted fixed cost – actual fixed cost.
Volume variance
Actual production volume X
Budgeted production volume Y
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Fixed overhead volume variance (units) X – Y
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Standard fixed overheads per unit $
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Fixed overhead volume variance (X – Y) × $
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This variance only arises in absorption costing systems.
Illustrations and further practice
Now try example 9 from Chapter 8.
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