Factory Overhead Yield Variance
Factory Overhead Variance Analysis 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.
Factory Overhead Yield Variance: Learning Objective of the article: Define and explain overhead yield variance. Calculate overhead yield variance when three variance and two variance approaches are used. Formula of Overhead Yield Variance: (Standard hours allowed for expected output × Standard overhead rate) –