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can you explain why the production volume overhead variance and net overhead are favorable if negative and the spending variance is unfavorable but it's a
can you explain why the production volume overhead variance and net overhead are favorable if negative and the spending variance is unfavorable but it's a positive number, thanks
EX 2 Step 1. To verify it is an industrial fixed cost. If this is the case I can proceed as following: I Depreciation of commercial building. NOT INDUSTRIAL Depreciation of industrial machinery (annual). INDUSTRIAL Step2: A) PRODUCTION VOLUME OVERHEAD VARIANCE: VEFF)= (100 000/190-150 AVOLUME=((FCBP/VOL.PROD.-FCBE/VOL.EFF) 000/240)*240 (526,315-625)*240=-23 684,4. FAV B) SPENDING OVERHEAD VARIANCE: ASPENDING FCBE-FCEFF (150 000+80.000)-(135 000 +90.000)=5 000 UNF c) NET OV=-23684,4+5000=-18.684,4. FAV Step by Step Solution
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