Question

A company has budgeted total overhead of $10,575 and actual total overhead of $9,775. the controllable variance is:________

Answer 1

The answer is 800 F.

Variances that can be controlled and those that cannot: it is the controlled. Variance that the management is worried about The variance is considered uncontrollable if it is out of the concerned person's power to influence it.

What does the controllable variance measure?

• Since the controllable variance assesses the effectiveness of employing variable overhead resources, it is advantageous if planned variable overhead exceeds actual outcomes.
• Standards are applied to manufacturing costs less frequently than to non-manufacturing expenditures.

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