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What is variable overhead in Cost Accounting?

The Variable Overhead Costs. (Cost Accounting)

Variable overhead costs are those costs which vary in total in direct production to the volume of out put. These costs per unit remain constant.

Actual Cost Method - Cost Control - MRP glossary of Production ...

image source: asprova.jp/mrp/glossary/en/fig/mrp_105.jpg

Examples of variable overheads are as follows:

  • Repair and maintenance.
  • Power, fuel, lubricant.
  • Indirect labor etc.

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Variable costs fluctuate in total amount but tend to remain constant per unit as production activity changes.

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