Manufacturing
Variable Overhead Efficiency Variance
Recording the cost impact of using more or fewer machine hours than the standard allowed for production.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Manufacturing Overhead (Applied) | Contra-Expense (+) | 1,000.00 | - |
| Variable OH Efficiency Variance (Unfavorable) | Expense (+) | 100.00 | - |
| Manufacturing Overhead (Control) | Expense (-) | - | 1,100.00 |
💡 Accountant's Note
If your machines are slow and take longer to make a product, you use more electricity. This entry captures that inefficiency cost.
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