1. Compute efficiency and flexible-budget variances for Cavio's variable overhead in March 2017. Will variable overhead be over- or underallocated? By how much? 2. Compute production-volume and flexible-budget variances for Cavio's fixed overhead in March 2017. Will fixed overhead be over- or underallocated? By how much? Required
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.
Step by step
Solved in 2 steps with 2 images
