Unavoidable costs - PowerPoint PPT Presentation

Overhead Variances

Overhead Variances. Swan is a specialty chemical produced in batches. Normal denominator volume is 100 batches per week. The weekly flexible budget for indirect costs is $1600 plus $5 per standard hour of direct labor. Indirect costs are absorbed on the basis of standard hours of direct labor.

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Prestige Telephone

Prestige Telephone. What should we learn? Fixed vs. variable classification Rent vs. Power Average cost is not variable cost Telling if a cost is fully or semi-variable Avoidable vs. unavoidable costs Operating Labor vs. Equipment Leases Traceable vs. Allocated Costs

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430 views • 3 slides

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