|overhead spending variance|
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Definition of overhead spending variance
overhead spending variance
the difference between total actual overhead and total budgeted overhead at actual
the difference between the total actual fixed overhead and budgeted fixed overhead;
the difference between total actual variable overhead and the budgeted amount of variable overhead based on actual input activity
the amount of overhead that has been assigned to Work in Process Inventory as a result of productive activity; credits for this amount are to an overhead account
the difference between total actual overhead
the budget variance of the two variance approach to analyzing overhead variances
A statistical measure of the degree to which random variables move together.
A measure of the degree to which returns on two assets move in
The variance between the budgeted and actual mixes of
All the costs incurred during the manufacturing process, minus the
That portion of total overhead costs which remains constant in size
see volume variance
A form of cafeteria plan allowing employees to pay
Expenditures on capital goods including new housing. Financial ''investments" and sales of existing assets are not included.
the number of hours actually worked minus the standard hours allowed for the production
The difference between the amount of time that was budgeted
labor mix variance
(actual mix X actual hours X standard rate) - (standard mix X actual hours X standard rate);
labor rate variance
the actual rate (or actual weighted average rate) paid to labor for the period minus the standard rate multiplied by all hours actually worked during the period;
Labor rate variance
The difference between the actual and standard direct labor rates
labor yield variance
(standard mix X actual hours X standard rate) - (standard mix X standard hours X standard rate);
material mix variance
(actual mix X actual quantity X standard price) - (standard mix X actual quantity X standardprice);
material price variance
total actual cost of material purchased
material quantity variance
(actual quantity X standard price) - (standard quantity allowed standard price);
material yield variance
(standard mix X actual quantity X standard price) - (standard mix X standard quantity X standard price);
Materials price variance
The difference between the actual and budgeted cost to
Materials quantity variance
The difference between the actual and budgeted quantities
Evaluation of risky prospects based on the expected value and variance of possible outcomes.
The selection of portfolios based on the means and variances of their returns. The
Mean-variance efficient portfolio
Related: Markowitz efficient portfolio
Graph of the lowest possible portfolio variance that is attainable for a given
The portfolio of risky assets with lowest variance.
A general term referring to period costs, such as selling, administration and financial expenses.
the fixed overhead volume variance;
a credit balance in the overhead account
Any cost other than a direct cost – may refer to an indirect production cost and/or to a non-production expense.
any factory or production cost that is indirect to
The process of spreading production overhead equitably over the volume of production of goods or services.
overhead application rate
see predetermined overhead rate
overhead generally refers to indirect, in contrast to direct,
overhead efficiency variance
the difference between total budgeted overhead at actual hours and total budgeted
The rate (often expressed per hour) applied to the time taken to produce a product/service, used to allocate production overheads to particular products/services based on the time taken. May be calculated on a business-wide or cost centre basis.
Weighted sum of the covariance and variances of the assets in a portfolio.
predetermined overhead rate
an estimated constant charge per unit of activity used to assign overhead cost to production or services of the period; it is calculated by dividing total budgeted annual overhead at a selected level of volume or activity by that selected measure of volume or activity; it is also the standard overhead application rate
A general term referring to indirect costs.
Production yield variance
The difference between the actual and budgeted proportions
Selling price variance
The difference between the actual and budgeted selling price for
The covariance between a variable and the lagged value of the variable; the same as
standard overhead application rate
a predetermined overhead rate used in a standard cost system; it can be a separate variable or fixed rate or a combined overhead rate
total overhead variance
the difference between total actual overhead and total applied overhead; it is the amount of underapplied or overapplied overhead
the difference between total actual cost incurred
a debit balance in the overhead account at the end of a period; when the applied overhead amount is less than the actual overhead that was incurred
variable overhead efficiency variance
the difference between budgeted variable overhead based on actual input activity and variable overhead applied to production
A measure of dispersion of a set of data points around their mean value. The mathematical
The weighted average of the squared deviations from the
a difference between an actual and a standard or
The dispersion of a variable. The square of the standard deviation.
Average value of squared deviations from mean. A measure of volatility.
A method of budgetary control that compares actual performance against plan, investigates the causes of the variance and takes corrective action to ensure that targets are achieved.
the process of categorizing the nature (favorable or unfavorable) of the differences between standard and actual costs and determining the reasons for those differences
Variance minimization approach to tracking
An approach to bond indexing that uses historical data to
Specifies the permitted minimum or maximum quantity of securities that can be delivered to
a fixed overhead variance that represents
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