Total Overhead Variance The total overhead variance is the indifference between the projected overhead balances and the actual overheads incurred during the production process. It includes both, fixed and variable aspects of the production and tends to reveal the overall variance in terms of the deviations between the standardized expenses that were budgeted and the actually incurred at paves way for the management to take corrective measures for the same. Controllable Overhead Variance: The controllable overhead variance is the deviation of budgeted overhead of standard number of units from the actual expenses incurred popularly within the factory overheads. Also, controllable overhead variance is confined to factory overheads irrespective of any in the volume. Through this the unexpected costs may be minimized by keeping the track record of expenses and comparing them with the standard ones. Total overhead variance and controllable overhead variance for the period and classify them as favorable and unfavorable.

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Provide correct answer this financial accounting question

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Chapter 8, Problem 14QS

To determine

Total Overhead Variance

The total overhead variance is the indifference between the projected overhead balances and the actual overheads incurred during the production process. It includes both, fixed and variable aspects of the production and tends to reveal the overall variance in terms of the deviations between the standardized expenses that were budgeted and the actually incurred at paves way for the management to take corrective measures for the same.

Controllable Overhead Variance:

The controllable overhead variance is the deviation of budgeted overhead of standard number of units from the actual expenses incurred popularly within the factory overheads. Also, controllable overhead variance is confined to factory overheads irrespective of any in the volume. Through this the unexpected costs may be minimized by keeping the track record of expenses and comparing them with the standard ones.

Total overhead variance and controllable overhead variance for the period and classify them as favorable and unfavorable.

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