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Variable Overheads

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(Querist)
23 December 2008 What r Variable Overheads ?
How r they treated in cost sheets?
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CA RAMESH KUMAR AHUJA

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CA RAMESH KUMAR AHUJA (Expert)
23 December 2008 Variable Overheads are those overheads which vary in the proportion of every increse or decrease in production.

In preparing a cost sheet Fixed Overheads allocated over the total production and then the same is added to arrive at the cost per unit while the variable overheads per unit remain the same irrespective of the volume of production and is directly added in the cost sheet to arrive at cost per unit.
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