13. Calculate the variable overhead cost variance.
Select the formula, then enter the amounts and compute the cost variance for variable overhead (VOH) and identify whether the variance is favorable (F) or unfavorable (U).
14. Calculate the variable overhead efficiency variance.
Select the formula, then enter the amounts and compute the efficiency variance for variable overhead and identify whether the variance is favorable (F) or unfavorable (U).
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×
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=
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VOH Efficiency Variance
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15. Calculate the total variable overhead variance
The total variable overhead variance is
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16. Calculate the fixed overhead cost variance
Select the formula, then enter the amounts and compute the cost variance for fixed overhead (FOH) and identify whether the variance is favorable (F) or unfavorable (U).
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Fixed Overhead Cost Variance
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17. Calculate the fixed overhead volume variance
First, select the formula, then enter the amounts and compute the fixed overhead allocated to production. (Abbreviations used: SQ = standard quantity, AO = actual output.)
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Overhead allocated to production
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=
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Now, select the formula, then enter the amounts and compute the fixed overhead volume variance and identify whether the variance is favorable (F) or unfavorable (U).
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Fixed Overhead Volume Variance
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18. Calculate the total fixed overhead variance.
The total fixed overhead variance is
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