If actual overhead costs amount to $11,000, the fixed overhead budget variance is $1000, meaning the company is $1000 over budget in overhead costs that month. Some companies prefer to make this ...

As a result, the fixed overhead volume variance is an unhealthy $60,000. The percentage of actual production compared to the expected production, or the efficiency, is only 25%.

What might a favorable direct labor efficiency variance indicate? Question: If the direct labor efficiency variance is positive, it could mean that lower-skilled workers were paid more than expected.

Subtract the budgeted cost ($4,000) from the actual overhead cost ($3,000) to get the fixed overhead variance. With this negative variance (-$1,000), you can tell that your company is operating ...

For example, assume a company budgeted to have 5,000 units produced the following year at an overhead rate per unit of $12. After calculating the production results for that year, it was confirmed ...

If costs are higher, there's an unfavorable variance. Accountants perform standard costing calculations periodically to help managers stay on budget, determine inventory costs and help management ...