Fixed Overhead Expenditure Variance in standard costing refers to the difference between the fixed overhead budgeted and the actual fixed overhead incurred.
Production Cost Variance in standard costing measures the difference between standard costs and actual costs for production. Understanding this variance helps in identifying efficiency levels and cost management effectiveness.
In standard costing, the variance consisting of the difference between the standard operating profit budgeted to be made on the items sold and the actual profits made. The analysis of the profit variance into its constituent sales, direct labor, direct material, and overhead variances provides the management of the organization with information regarding the source of the gains and losses compared to the predetermined standard.
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