Static Plexible Volume Purchasing manager Favorable Unfavorable Debit Credit Fixed overhead budget Fixed overhead volune Spending Production manager Variable overhead rate Variable overhead effieiency Fixed overhead spending Ixed overhead spending 1. A budget is based on a fixed estimate of sales volume. A volume 2. variance represents the difference between actual and expected levels of activity 3. The is typically responsible for the direct materials quantity variance The variable overhead rate variance is 4 when the actual variable overhead rate is less than the standard variable overhead rate. entries; favorable variances appear as favorable Unfavorable variances appear as credit debit entries variance is the difference between the number of actual direct labor hours used and the number of standard direct labor hours muliplied by the standard variable overhead rate The fixed overhead volume 6 Using less direct materials than expected results in a The variable overhead efficiency 7. favorable variance 8. is typically responsible for the direct labor efficiency variance. 9 The static 10. When recording journal entries, the actual cost is a variance is sometimos also called the denominator variance, debit and the standard cost is a credit