Computing Factory Overhead Costs and Variance

Computing Factory Overhead Costs and Variance

The process of analyzing overall performance of a company often entails making comparisons between anticipated costs and actual costs for areas such as materials, labor, and factory overhead. To make such comparisons, managers use the principle of variance analysis to determine how well company operations are meeting expectations. Within a Human Resource budget, the costs per hire including funds on recruitment, training, evaluation and total rewards represent a significant portion of an organization’s expenses. These costs vary widely across industries.

In this Application, you will analyze two scenarios using the information presented in your Resources. You will apply your knowledge of variance analysis, flexible budgets, and overhead to draw conclusions about the following scenarios.

You will set up and use an Excel spreadsheet for all your calculations for the problems below, and the spreadsheet you develop should be what you turn in for the Application.


Please see attachment for the assignment. This assignment must be completed in Excel



human resource management  VARIANCE ANALYSIS ol budgeting & resource allocation


Answer Preview…………….

 The use of the static budget report in the analysis of the performance of the company is not accurate since the amounts for the indirect labor, supplies and utilities have been set at a budgeted 10,000 units. The actual operations of the company result in the production of 12,000 units. It is essential to draw a flexible budget to allow for the comparison of the budget for 12,000 units with the actual costs incurred. From the flexible budget prepared, it is evident that……………….

APA 390 words & excel file