Volume Variance – NBC Institute

ICMA – Nov 2024 – L1 – Q3d – Fixed Overhead Volume Variance

Explains the concept of fixed overhead volume variance and lists potential causes for such variances.

Question

Fixed Overhead Volume Variance
Fixed overhead volume variance (FOVV) measures the difference between the actual fixed overheads incurred and the fixed overheads that should have been incurred at the actual level of activity.

Required:
Explain fixed overhead volume variance and TWO possible causes of such variances.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Cost Control, Fixed Overhead, Volume Variance
Level: Level 1

Topic: Standard Costing and Variance Analysis
Series: Nov 2024

MA – Aug 2022 – L2 – Q3a – Standard costing and variance analysis

This question asks for the calculation of five types of fixed overhead variances based on given production data.

Question

The data below relates to Odeneho Plc and they are in respect of the production of its product, Milcho, for the first quarter ended 31 March 2022.

Budgeted output: 5,000 units
Standard hours to produce one unit: 2 hours
Budgeted fixed production overhead: GH¢25,000
Actual fixed production overhead incurred: GH¢25,840
Actual hours worked: 10,500
Actual units produced: 4,980

Required:
Determine the following:
i) Fixed overhead expenditure variance.
(2 marks)

ii) Fixed overhead capacity variance.
(2 marks)

iii) Fixed overhead efficiency variance.
(2 marks)

iv) Fixed overhead volume variance.
(2 marks)

v) Fixed production overhead variance.
(2 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Capacity, Efficiency, Fixed Overhead, Variance Analysis, Volume Variance
Level: Level 2

Topic: Standard Costing and Variance Analysis
Series: AUG 2022

MA – Mar 2024 – L2 – Q3a – Standard costing and variance analysis

This question calculates the sales price, volume, quantity, and mix variances for three products sold by Manjo Plc for the month of January.

Question

The following information relates to the estimate and actual results of Manjo Plc for the month of January:

Particulars	KO	TO	KA
Budgeted sales (units)	36,000	27,000	18,000
Standard selling price (GH¢)	15	10	12.5
Standard variable cost (GH¢)	8	4	7.5
Actual sales (units)	30,000	35,000	25,000
Actual sales (GH¢)	420,000	367,500	325,000

Required:
i) Calculate the sales price variance. (3 marks)
ii) Calculate the sales volume variance. (3 marks)
iii) Analyse the sales volume variance into:

Sales quantity variance. (5 marks)
Sales mix variance. (4 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: mix variance, Price Variance, Quantity Variance, Sales Variance, Volume Variance
Level: Level 2

Topic: Standard Costing and Variance Analysis
Series: MAR 2024

ICMA – Nov 2024 – L1 – Q3d – Fixed Overhead Volume Variance

Explains the concept of fixed overhead volume variance and lists potential causes for such variances.

Question

Required:
Explain fixed overhead volume variance and TWO possible causes of such variances.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Cost Control, Fixed Overhead, Volume Variance
Level: Level 1

Topic: Standard Costing and Variance Analysis
Series: Nov 2024

MA – Aug 2022 – L2 – Q3a – Standard costing and variance analysis

This question asks for the calculation of five types of fixed overhead variances based on given production data.

Question

The data below relates to Odeneho Plc and they are in respect of the production of its product, Milcho, for the first quarter ended 31 March 2022.

Budgeted output: 5,000 units
Standard hours to produce one unit: 2 hours
Budgeted fixed production overhead: GH¢25,000
Actual fixed production overhead incurred: GH¢25,840
Actual hours worked: 10,500
Actual units produced: 4,980

Required:
Determine the following:
i) Fixed overhead expenditure variance.
(2 marks)

ii) Fixed overhead capacity variance.
(2 marks)

iii) Fixed overhead efficiency variance.
(2 marks)

iv) Fixed overhead volume variance.
(2 marks)

v) Fixed production overhead variance.
(2 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Capacity, Efficiency, Fixed Overhead, Variance Analysis, Volume Variance
Level: Level 2

Topic: Standard Costing and Variance Analysis
Series: AUG 2022

MA – Mar 2024 – L2 – Q3a – Standard costing and variance analysis

This question calculates the sales price, volume, quantity, and mix variances for three products sold by Manjo Plc for the month of January.

Question

The following information relates to the estimate and actual results of Manjo Plc for the month of January:

Particulars	KO	TO	KA
Budgeted sales (units)	36,000	27,000	18,000
Standard selling price (GH¢)	15	10	12.5
Standard variable cost (GH¢)	8	4	7.5
Actual sales (units)	30,000	35,000	25,000
Actual sales (GH¢)	420,000	367,500	325,000

Required:
i) Calculate the sales price variance. (3 marks)
ii) Calculate the sales volume variance. (3 marks)
iii) Analyse the sales volume variance into:

Sales quantity variance. (5 marks)
Sales mix variance. (4 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: mix variance, Price Variance, Quantity Variance, Sales Variance, Volume Variance
Level: Level 2

Topic: Standard Costing and Variance Analysis
Series: MAR 2024

Question Tag: Volume Variance

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ICMA – Nov 2024 – L1 – Q3d – Fixed Overhead Volume Variance

Explains the concept of fixed overhead volume variance and lists potential causes for such variances.

MA – Aug 2022 – L2 – Q3a – Standard costing and variance analysis

This question asks for the calculation of five types of fixed overhead variances based on given production data.

MA – Mar 2024 – L2 – Q3a – Standard costing and variance analysis

This question calculates the sales price, volume, quantity, and mix variances for three products sold by Manjo Plc for the month of January.

ICMA – Nov 2024 – L1 – Q3d – Fixed Overhead Volume Variance

Explains the concept of fixed overhead volume variance and lists potential causes for such variances.

MA – Aug 2022 – L2 – Q3a – Standard costing and variance analysis

This question asks for the calculation of five types of fixed overhead variances based on given production data.

MA – Mar 2024 – L2 – Q3a – Standard costing and variance analysis

This question calculates the sales price, volume, quantity, and mix variances for three products sold by Manjo Plc for the month of January.

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Question Tag: Volume Variance

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ICMA – Nov 2024 – L1 – Q3d – Fixed Overhead Volume Variance

Explains the concept of fixed overhead volume variance and lists potential causes for such variances.

You're reporting an error for "ICMA – Nov 2024 – L1 – Q3d – Fixed Overhead Volume Variance"

MA – Aug 2022 – L2 – Q3a – Standard costing and variance analysis

This question asks for the calculation of five types of fixed overhead variances based on given production data.

You're reporting an error for "MA – Aug 2022 – L2 – Q3a – Standard costing and variance analysis"

MA – Mar 2024 – L2 – Q3a – Standard costing and variance analysis

This question calculates the sales price, volume, quantity, and mix variances for three products sold by Manjo Plc for the month of January.

You're reporting an error for "MA – Mar 2024 – L2 – Q3a – Standard costing and variance analysis"

ICMA – Nov 2024 – L1 – Q3d – Fixed Overhead Volume Variance

Explains the concept of fixed overhead volume variance and lists potential causes for such variances.

You're reporting an error for "ICMA – Nov 2024 – L1 – Q3d – Fixed Overhead Volume Variance"

MA – Aug 2022 – L2 – Q3a – Standard costing and variance analysis

This question asks for the calculation of five types of fixed overhead variances based on given production data.

You're reporting an error for "MA – Aug 2022 – L2 – Q3a – Standard costing and variance analysis"

MA – Mar 2024 – L2 – Q3a – Standard costing and variance analysis

This question calculates the sales price, volume, quantity, and mix variances for three products sold by Manjo Plc for the month of January.

You're reporting an error for "MA – Mar 2024 – L2 – Q3a – Standard costing and variance analysis"

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