Chapter 8, Problem 16QS

To determine

Overhead Cost Variances

The overhead cost variance is the differential amount of the anticipated costs to be incurred during the production process and the original or actual costs incurred during the production The resultant variances helps the business to increase the efficiency in the production process by minimizing the extra costs that are revealed through these variances. Also, it helps the management to locate appropriate cost centers and prepare budget accordingly.

Actual total overhead cost incurred during the accounting period.