The amount of the variable factory overhead controllable variance is
A) $2,000 unfavorable
B) $3,000 favorable
C) $0
D) $3,000 unfavorable

Question

Quizplus · Accepted Answer

The variable factory overhead controllable variance is calculated by comparing the actual variable overhead costs incurred to the budgeted (or standard) variable overhead costs based on the actual production levels. If the actual costs exceed the budgeted costs, the variance is unfavorable. If the actual costs are less than the budgeted costs, the variance is favorable. Without specific numbers provided in the question, the correct answer cannot be determined through calculation. However, if the question implies that the variance is $3,000 unfavorable, it means the actual costs were $3,000 higher than the budgeted costs, indicating option D is correct.

The Amount of the Variable Factory Overhead Controllable Variance Is