رد: N:21-Unit 7.7 : COMPREHENSIVE EXAMPLE
Thanks a lot now I got it clearly
1st all variances DM, DL, VMOH are based on actual output because they are variable by nature
2nd FOH variables based on budgeted or the input because they are fix and under FOH the volume variance is the variance per unit cost so if number of product increase => cost per unit decrease
FOH spending variance exist due to events such as unexpected changes in rents, insurance, and property taxes; it is not affected by level of production
thanks indeed for your help and I hope that this clarification help other colleges
Regards