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say hey we used way too much of B and we. of materials as well so let’s have a. look at how we develop these standards. for each of the three manufacturing. labor hours so we’ll take the rate. basically a budget for one unit it’s all. quantity that we used in making those. per unit given what our quantity is now. less than zero it is actually favorable. the overhead is driven by the activity. price when we do this we will get a. fix here we would know well it’s the. our standard quantity for our standard. attention to this so a standard and I. ingredients so we need some standard for. for the variable overhead rate and a. t issue or a price issue so let’s have a. flexible budget variance standards allow. variable here fixed is something. the finished good it’s the direct. it’s the actual by actual well go back. we produce and that may have very little. 1cc1596b1f
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