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Factory Overhead Volume Variance: Learning Objective of the article: Define and explain factory overhead volume variance. How is FOH volume variance calculated? Contents: Definition Formula Example Definition: Factory overhead volume…
Standard Costing and Variance Analysis Formulas: Learning Objective of the article: Learn the formulas to calculate direct materials, direct labor and factory overhead variances.(Formula of Variance ) This is a collection…
Variance Analysis and Management By Exception: Variance analysis and performance reports are important elements of management by exception. Simply put, management by exception means that the manager's attention should be…
Managerial Usefulness/Importance of Variance Analysis: Learning Objectives: Explain the importance of variance analysis for management in decision making process. Costs of production are effected by internal factors over which management…
Factory Overhead Yield Variance: Learning Objective of the article: Define and explain overhead yield variance. Calculate overhead yield variance when three variance and two variance approaches are used. Formula of…
Variable Overhead Efficiency Variance: Learning Objective of the article: Define and explain variable overhead efficiency variance. How is variable overhead efficiency variance calculated? What are the reasons / causes of…
Manufacturing Overhead Cost Standards: Learning Objective of the article: How manufacturing overhead standards are set? Procedures for establishing and using standard factory overhead rates are similar to the methods of…
Overall or Net Factory Overhead Variance: Definition: Overall or net factory overhead variance is the difference between actually incurred factory overhead and expenses charged into process using the standard factory…
Materials Mix and Yield Variance: Learning Objective of the article: Define and explain materials mix and yield variances. What are the formulas of materials mix and yield variances? Calculate materials…
Mix Variance and Yield Variance: Learning Objective of the article: Define and explain Mix Variance and yield variances. Why mix and yield variances are calculated? Basically, the establishment of standard…
Direct Labor Yield Variance: Learning Objective of the article: Define and explain labor yield variances. Calculate labor yield variance. Rate and efficiency variances of labor are explained on direct labor…
Factory Overhead Controllable Variance: Learning Objective of the article: Define and explain factory overhead controllable variance. How FOH controllable variance is calculated? What are the reasons / causes of unfavorable…
Fixed Overhead Efficiency Variance: Learning Objective of the article: Define and explain fixed overhead efficiency variance. How is fixed overhead efficiency variance calculated? What are the reasons / causes of…
Factory Overhead Efficiency Variance: Learning Objective of the article: Define and explain factory overhead efficiency variance. How is FOH efficiency variance calculated? What are the reasons / causes of unfavorable…
Sana Ahmed 
Shamsa Rafique 
Abida Rehman