The purpose of this article is to address the notion that overhead variance analysis is a topic that is too difficult for the basic Managerial Accounting course. Many faculty members feel that since overhead analysis appears to be “formula driven,” it is not worth covering. The authors feel that with the increase in importance on overhead costs in virtually all organizations, the deletion of this topic could significantly decrease a firm’s ability to control cost.

This article is from the Accounting Instructors’ Report, an electronic journal that provides teaching tips and insights to those who teach accounting and other business courses.

James M. Emig, Villanova University
Robert P. Derstine, West Chester University
Thomas J. Grant, Kutztown University

Read Analyzing Overhead Variance Without Utilizing a Single Formula.