Standard variable overhead rate $3.75 per hour >>$250 Favorable Unfavorable labor rate variances may occur as a result of: >>skilled workers being assigned to jobs requiring little skill. >>overtime premiums being charged to the direct labor account. The volume variance = the fixed component of the predetermined overhead rate x (Denominator hours Overhead expenses are all costs on the income statement except for direct labor, direct materials, and direct expenses. Overhead expenses include accounting fees, advertising , insurance , interest, legal fees, labor burden, rent , repairs, supplies, taxes, telephone bills, travel expenditures, and utilities.
My name is Johnson Joseph, based in Nigeria, I have been lecturing Cost Accounting and performance management for over 10 years. i can join your team to make questions on certain/selected topics available