29Dic
8 4: Compute and Evaluate Overhead Variances Business LibreTexts
On the other hand, the standard variable overhead rate can be determined with the budgeted variable overhead cost dividing by the level of activity required for the particular level of production. Standard variable overhead rate may be expressed in terms of the number of machine hours or labor hours. Very often however, companies have a combination of manual and automated business processes which may necessitate the use of both basis of variable overhead absorption. Figure 8.5 shows the connection between...
