Variable Overhead Variance Essay Example | Topics and Well Written Essays - 500 words

Variable Overhead Variance - Essay ExampleAs earlier explained, the possible causes for these adverse variable manufacturing overhead variance is over utilization of the machine hours than what was budgeted that it negates counterbalance the favorable effects of lower disbursement for such manufacture.In order to reduce the cost of expenditure for the manufacturing purposes, some direct materials are sourced from local sources which may not be of standard quality thereby increasing the time spent on machine hours to match the required sandal design specifications. Hence, the management involve to check in for quality of the untoughened material purchased rather than only going by damage considerations so that the overall cost of manufacturing overhead reduced and even the quality of the finished product would be even better than what is marketed now.It is observed that the raw material purchases are below the budgeted standards thereby raising doubts on the quality of the raw ma terial procured and as such, work on them becomes tedious and more time go through in terms of machine hours. Care should be taken while selecting the right type of raw material so that in the coming months, there is no occurrence of