What does VOH stand for?

Despite this, a disappointingly high number of candidates wasted a lot of valuable time calculating labour variances and variable overhead variances.

To get only the variable overhead allocated to each type of bike, we take the variable overhead rate, available in the Overhead Budget (Figure 1, April 2010), times the variable cost driver required for each type of bike--direct labor hours for our example.

Rational cost sharing We developed an equitable cost system where each doctor pays a fixed and variable overhead fee to the MSO.

Because the plant is still producing the same amount of product, all fixed and variable overhead costs are now covered by the 16 presses, but the profit is increased by $277,500 or 53%.

are as follows: Market value of the company (investment) [1] $1,000,000 Return On Investment (ROI) [1] 10% Estimated costs for the year: Direct labor $ 200,000 Direct materials 300,000 Variable overhead 60,000 Fixed overhead 40,000 Variable selling/admin 30,000 Fixed selling/admin 70,000 Total cost $700,000 Assumptions: All costs are incurred evenly and in proportion to each other for each customer order (initial case only).

Reduced variable overhead cost, more control over fixed costs, much greater flexibility in the use of resources and the removal of interruptions to core business time caused by ad hoc human resource issues falling in to the laps of functional managers.