Definition of Variable Overhead

Variable Overhead Includes

      Indirect Material :-   Linked With Output.

      Indirect Labour :- Linked With Payment Procedure.

      Indirect Expenses :- Linked With Working Hours.

Variable Cost Includes

v  Prime cost    i.e.  Direct Material Consumed    =   xxxxxx

                        Direct Labour                     =   xxxxxx

                        Direct Expenses                  =   xxxxxx

v  Variable Overhead                                        =   xxxxxx

Note :

1.     In the absence of any Information , we always pre-sume that

Variable overhead Includes :- Indirect Expenses ( Electricity, Power, Energy etc. )