Page 119 - P1 Integrated Workbook STUDENT 2018
P. 119
Variance analysis
6.2 Splitting the volume variance
Capacity variance $
Actual hours × FOAR per hour X
Less: Budgeted expenditure Y
–––––
Fixed overhead capacity variance X – Y
–––––
Efficiency variance $
Standard hours × FOAR per X
hour
Actual hours × FOAR per hour Y
–––––
Fixed overhead efficiency variance X – Y
–––––
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