# Spending variances formula

Variance analysis should also be performed to evaluate spending and utilization for factory overhead. Overhead variances are a bit more challenging to calculate and evaluate. As a result, the techniques for factory overhead evaluation vary considerably from company to company. 1) The formula does not work when the start and end dates are the same. I fixed this by manually changing the hours on either the start or end date so they were no longer identical. 2) If either a start or end date falls on the last day of a month, the formula does not work right. Calculating the Variances: It is the preliminary step of variance analysis where the difference is found between the planned and actual performance using various standards adopted. Finding the reasons for such variances : It is the second step where the reason for such deviations is analyzed and found out after proper study. Overhead spending variance is calculated when overall or net overhead variance is further analyzed using three variance method. Other two variances that are calculated in three variance method are overhead idle capacity variance and overhead efficiency variance. Formula: To calculate percentage sold, you can use a simple formula that divides sold amount by the total amount. In the example shown, the formula in E6 is = D6 / C6 How this formula works This formula simply divides the told sold by the total. In cell E6,...