Fixed Overhead Cost Variances Homework Help

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‘Accounts’ is an essential subject that acknowledges about financial records of a company. This is not quite easy to get an exact solution, and so there are different topics to understand how to keep proper records of a company. Fixed overhead cost variance is the study in accounts that is an exact difference between an absorbed value of fixed overhead and the actual value of incurred fixed overhead. In this condition, the value of absorbed overheads is greater than actual overhead.

On the basis of this theory, a company works for the customer for a particular time period. Assignments are provided to the students to grab a good grip over the subject. In case of any problem, you must take assistance of fixed overhead cost variances homework help.

What is the exact formula used?

Fixed overhead cost variance = Absorbed fixed overheads – actual fixed overheads

Fixed overhead cost variances homework help explains each term properly so that students may not get any confusion.

Explanation of fixed overhead cost variance with an example

If a company ABC needs to manufacture 25000 units of a part of automobiles within 25 days, and it produced 27500. In addition, if the actual fixed production overheads value is $ 5260000 and the value of budgeted fixed production overheads is $5000000, then you must properly know something.


Budgeted production = 25000

Actual production = 27500

Actual fixed production overheads = $ 5260000

Budgeted fixed production overheads = $5000000

One thing that is needed to be found out here is fixed overhead absorption rate.

So, Fixed overhead absorption rate = Budgeted fixed overheads / budgeted output

= $5000000/25000 = $ 200 per unit

Now, the team of fixed overhead cost variances homework help explains about the requirement of absorbed fixed overheads. So, this is 27500 x $ 200 = 5500000

So, Fixed overhead cost variance = 5500000 – 526000

                                                     = $ 24000

This above example clears the exact motto of how to complete homework related to this term of cost variance. All students will get its perfect output whenever they will go through some live projects, highlighted in different ways.

What are the different sub variances of overhead cost variance?

There are two main sub variances–

  1. Fixed overhead volume variance
  2. Fixed Overhead expenditure variance

By understanding these above points, you can easily find out a lot of solutions according to your need. Now, different assignments are provided to have a good grip. In addition, fixed overhead cost variances assignment help team explains each question uniquely and simply.

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