Skip to main content
Business LibreTexts

10.6: Introduction to Variable Manufacturing Overhead Variances

  • Page ID
    45943
  • \( \newcommand{\vecs}[1]{\overset { \scriptstyle \rightharpoonup} {\mathbf{#1}} } \) \( \newcommand{\vecd}[1]{\overset{-\!-\!\rightharpoonup}{\vphantom{a}\smash {#1}}} \)\(\newcommand{\id}{\mathrm{id}}\) \( \newcommand{\Span}{\mathrm{span}}\) \( \newcommand{\kernel}{\mathrm{null}\,}\) \( \newcommand{\range}{\mathrm{range}\,}\) \( \newcommand{\RealPart}{\mathrm{Re}}\) \( \newcommand{\ImaginaryPart}{\mathrm{Im}}\) \( \newcommand{\Argument}{\mathrm{Arg}}\) \( \newcommand{\norm}[1]{\| #1 \|}\) \( \newcommand{\inner}[2]{\langle #1, #2 \rangle}\) \( \newcommand{\Span}{\mathrm{span}}\) \(\newcommand{\id}{\mathrm{id}}\) \( \newcommand{\Span}{\mathrm{span}}\) \( \newcommand{\kernel}{\mathrm{null}\,}\) \( \newcommand{\range}{\mathrm{range}\,}\) \( \newcommand{\RealPart}{\mathrm{Re}}\) \( \newcommand{\ImaginaryPart}{\mathrm{Im}}\) \( \newcommand{\Argument}{\mathrm{Arg}}\) \( \newcommand{\norm}[1]{\| #1 \|}\) \( \newcommand{\inner}[2]{\langle #1, #2 \rangle}\) \( \newcommand{\Span}{\mathrm{span}}\)

    What you’ll learn to do: Discuss the variable manufacturing overhead variances

    Remember back when we figured out our manufacturing overhead budget? It seems like a really long time ago, but here we are, back looking at that information again!! Just a reminder of how important the budgeting process is. We have used those pesky budgets during every step of the variance calculation process.

    So guess what? One more standard cost variance analysis for variable manufacturing overhead!

    Take a look at this video for a review of flexible budgeting, and calculating variances.

    CC licensed content, Original
    • Introduction to Variable Manufacturing Overhead Variances. Authored by: Freedom Learning Group. Provided by: Lumen Learning. License: CC BY: Attribution

    10.6: Introduction to Variable Manufacturing Overhead Variances is shared under a not declared license and was authored, remixed, and/or curated by LibreTexts.

    • Was this article helpful?