overheadvariances
Overhead variances, also known as organizational or administrative variances, are financial variances that occur as a result of differences between the actual and budgeted overhead costs of an organization or a production department.
Overhead variances arise from a variety of sources, including differences in the actual costs of energy, rent,
There are several types of overhead variances, including:
* Favorable variances: These occur when actual overhead costs are less than budgeted costs.
* Unfavorable variances: These occur when actual overhead costs are greater than budgeted costs.
* Volume variances: These occur when changes in production volume affect the overall overhead costs.
* Efficiency variances: These occur when changes in production efficiency affect the overall overhead costs.
Overhead variances can have a significant impact on the financial performance of an organization. Unfavorable variances,
Accurate calculation and analysis of overhead variances require access to detailed cost data and knowledge of