The fixed factory overhead controllable variance is
A)$9,000 favorable
B)$9,000 unfavorable
C)$5,500 favorable
D)$5,500 unfavorable

Question

Quizplus · Accepted Answer

Since the fixed factory overhead controllable variance refers to the difference between the budgeted fixed overhead and the actual fixed overhead that is controllable by management, a favorable variance implies that actual controllable fixed overhead costs were less than budgeted. Therefore, choice C, which represents a favorable variance of $5,500, is the best option.

The Fixed Factory Overhead Controllable Variance Is