Terms Beginning With 'v'

Variable Overhead Spending Variance

  • January 29, 2020
  • Team Kalkine

Variable Overhead Spending Variance is the difference between the actual variable manufacturing overhead experienced and actual hours worked during the period multiplied by standard variable overhead rate.

In case the variable manufacturing overhead is above the actual hours worked at standard rate, then we say that the variable overhead spending variance would be favourable else unfavourable.

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