# Factory Overhead Variances

Factory Overhead Variance also called manufacturing overhead or factory burden comprises the indirect expenses associated with the operations of a manufacturing plant. These costs cannot be directly charged to a specific product or project. All expenses that fall under factory overhead are divided into three different subcategories. Indirect material, indirect labor and other indirect costs.

Standard Costing and Variance Analysis: After studying this chapter you should be able to: Explain how direct materials standard and direct labor standards are set. Compute the direct materials price and quantity variances and explain their significance. Compute the direct labor rate and efficiency

Standard Costing and Variance Analysis Formulas: Learning Objective of the article: Learn the formulas to calculate direct materials, direct labor and factory overhead variances.(Formula of Variance ) This is a collection of variance formulas / equations which can help you calculate variances for direct materials,