Explain Why There Is No Efficiency Variance for Fixed Manufacturing

question 152

Essay

Explain why there is no efficiency variance for fixed manufacturing overhead costs.

Understand the concepts of equivalent units for materials and conversion costs in process costing.

Compute the cost of units transferred out of a department under the weighted-average method.

Recognize the differences in total cost allocation between the step-down and direct methods.

Recognize and apply the calculation of equivalent units of production under FIFO method.

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