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Fixed Overhead Spending Variance 

Edspira
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This video shows how to calculate the fixed overhead spending variance.
The fixed overhead spending variance is the difference between the actual amount of fixed overhead and the budgeted amount of fixed overhead.
If the company spent more than it should have (according to the standard, which is set by management) on fixed overhead, then the fixed overhead spending variance is unfavorable.-
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24 сен 2024

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Комментарии : 12   
@lightorchestrator
@lightorchestrator 4 года назад
I'm so glad I watched this and the other OH variance videos. May actually give me a passing chance on BEC.
@trinitypark2769
@trinitypark2769 2 года назад
Your explanation is very simple and neat! It would be very hard to understand my course now without your help. Thank you so much.
@Edspira
@Edspira 2 года назад
Glad it was helpful!
@mjt_00
@mjt_00 11 месяцев назад
Why did you take the 97'000 and not the actual 90'000 machine hours? I thought that the spending variance is always the difference between Actual Result and the flexible budget (actual machine hours * budgeted FMOH rate) like it was in the variable Overhead Spending Variance Video of you...
@davidjones5319
@davidjones5319 10 месяцев назад
Excellent
@ralphjasperzacarias6185
@ralphjasperzacarias6185 2 года назад
How can i compute for the fixed OH spending variance if only the actual total OH is given?
@Arban19
@Arban19 5 лет назад
But why don’t we use budgeted fixed overheads for actual output instead?
@jaryd123456
@jaryd123456 5 лет назад
I'm not sure either, I thought budgeted fixed OH would have a quantity of 90,000 - not 97,500 ... It seems like applied and budgeted are flipped.
@heidisuing5349
@heidisuing5349 3 года назад
@@jaryd123456 same thoughts
@danielpilz2553
@danielpilz2553 3 года назад
Actual Fixed OH rate is 400,000/90,000 total machine hours = 4.44 $/machine hour, but we don't need this, because the variance should compare the total costs not the per unit or per hour cost. AQ total * AQ unit, SQ total *SP unit.
@mjt_00
@mjt_00 11 месяцев назад
Absolutely, I think that too
@lf24-87
@lf24-87 Год назад
God
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