What is the amount of the variable factory overhead controllable variance?
A) $10,000 favorable
B) $2,500 unfavorable
C) $10,000 unfavorable
D) $2,500 favorable

Question

Quizplus · Accepted Answer

The variable factory overhead controllable variance is calculated by comparing the actual variable overhead costs to the budgeted variable overhead costs based on actual production levels. The $2,500 unfavorable variance indicates that the actual costs were $2,500 higher than the budgeted costs.

What Is the Amount of the Variable Factory Overhead Controllable