文档介绍：Lecture 6
STANDARD COSTING AND OVERHEADS
DISPOSITION OF VARIANCES
Review
What is std costing?
Caculations of each manufacturing cost ?
2
A. Standard costing
-OHs
3
1. Standard costing – pared with DM, DL
DM&DL
OHs
WITH LAST WEEK’S LECTURE
4
1. Standard costing – pared with DM, DL
FIXED OH VOLUME VARIANCE
(also called denominator and production volume variance (PVV)
A fixed overhead volume variance occurs whenever
Volume variance (F) = produced more units than budgeted
Volume variance (U) = produced fewer units than budgeted
Volume variance 0 = actual units produced equals budgeted production.
5
1. Standard costing – pared with DM, DL
An overhead price (spending) variance occurs when a firm spends more or less on either fixed or variable overhead for units produced than it planned (budgeted) to spend.
A variable overhead efficiency variance occurs when a firm uses more or fewer units of the cost driver (in ITB’s case, machine hours) than it should have used for the units produced. (Note that the cost driver will not always be machine hours, so you need to read the question.)
6
1. Standard costing – pared with DM, DL
Common conventions of OHs
If given a budgeted fixed amount for a year, divide it by 12 to convert to a monthly figure.
Where possible, variances are calculated separately for fixed and variable overhead.
Some firms have a separate ledger account for fixed and variable overhead. Other firms include both fixed and variable in the one account, which is what we do.
In the variance table, these notes show the fixed calculations on the first line, then variable costs. This setting out is chosen simply because it lines up with the way the flexible budget formula is always expressed. You may please yourself.
7
2. Overhead – normal and standard pared
8
2. Overhead – normal and standard pared
ITEMS WHICH REMAIN THE SAME UNDER STANDARD COSTING
About actual OH incurred
OH
D
C
OH control
D
C
Actual OH
Actual OH
9
2. O