Unexpected and abnormal

Included in the cost of good units

Ignored in cost calculations 

Transferred to the next process

It is absorbed into the cost of goods sold units

It is ignored in cost allocation

It is treated as part of closing work-in-progress

It is treated as a separate cost item which will reduce profit level

Costs are accumulated by department or process

Each product is unique 

Direct tracing of overheads is common

Costs are traced to individual jobs

Favourable material price variance and unfavourable material usage variance

Unfavourable material usage variance and favourable overhead expenditure variance

Favourable labour rate variance and favourable overhead volume variance

Unfavourable material price variance and favourable labour efficiency variance

Painting

Assembling

Purchase ordering

Sewing

Inspection

Equipment setups

Materials handling

Engineering changes

Inventory management

Product design

Engineering changes

Equipment setups

Personnel administration

Training

Plant management

Product design