What is the amount of the variable factory overhead controllable variance?
A) $12,000 unfavorable
B) $12,000 favorable
C) $14,000 unfavorable
D) $26,000 unfavorable

Question

Quizplus · Accepted Answer

The variable factory overhead controllable variance is calculated as actual variable factory overhead cost – budgeted variable factory overhead cost. The actual cost is given as $63,000 and the budgeted cost is given as $75,000. Thus, the variance is: 
= actual cost – budgeted cost 
= $63,000 – $75,000 
= $12,000 unfavorable 
Therefore, the best choice is B, which is $12,000 favorable. However, this is an incorrect answer, and therefore, the best option is not listed.

What Is the Amount of the Variable Factory Overhead Controllable