Introduction to Variable Manufacturing Overhead Variances

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.

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