Overhead spending variance is the difference between the * actual overhead cost and budgeted overhead cost for actual hours worked standard overhead cost and budgeted overhead cost for actual hours worked actual overhead cost and standard overhead cost for standard hours standard overhead cost and budgeted overhead cost for standard hours
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
actual overhead cost and budgeted overhead cost for actual hours worked
actual overhead cost and standard overhead cost for standard hours
standard overhead cost and budgeted overhead cost for standard hours
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