Costing doubt plz helpII
This query is : Resolved
21 April 2011
Is d formula for idle capacity cost = budgeted overheads / normal capacity of the plant.
plz help out
Thanx! !
plz help out
Thanx! !
22 April 2011
Formula of IdleCapacity Variance:Following formula/equation is used forthe calculation offactory overhead idlecapacity variance:
[Budgeted allowancebased on actualhours worked* – (Actual hours worked× Standardoverhead rate)]*
(or)
Fixed expenses budgeted Variable expenses (actualhours worked × variableoverhead rate)
Formula of IdleCapacity Variance:Following formula/equation is used forthe calculation offactory overhead idlecapacity variance:
[Budgeted allowancebased on actualhours worked* – (Actual hours worked× Standardoverhead rate)]*
(or)
Fixed expenses budgeted Variable expenses (actualhours worked × variableoverhead rate)
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