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# Volume VarianceFactory Overhead Volume Variance Formula.

Definition: Volume variance is the difference between the total budgeted overhead costs and the actual amount of overhead costs allocated to production processes using the fixed overhead rate as a result of a difference in budgeted and actual production volume. This variance occurs when the actual volume of products produced differs from the budgeted or estimated production schedule. Actual factory overhead is \$7,384. Actual production is 850 units of finished product. Actual hours used are 3,475 hours. 4 standard hours are allowed to complete a unit of finished product. Required: Calculate factory overhead volume variance. Explanation of the Variance Analysis Formula. There are various aspects of variance analysis formula as mentioned above. The difference between the direct material’s standard cost and direct material’s actual cost that the firm uses for its production can be termed as Material Variance Cost Variance. The first term in every formula is.

Sales Volume Variance Formula. In general, the formula of Sales Volume Variance is. Sales Volume Variance = Actual units sold – Budgeted units sold x standard price per unit. Here is the list of Variance Formula you may looking for, Variance Formula. This formula. Production-volume variance: The production volume variance is the difference between the actual number of units produced and the number of units budgeted to produce in a particulars period of time and the difference will be multiplied by the budgeted overhead rate. This can be measured by the following formula.