The variable factory overhead controllable variance measures:
A)operating results at less than normal capacity.
B)the efficiency of using variable overhead resources.
C)operating results at more than normal capacity.
D)control over fixed overhead costs.

Question

Quizplus · Accepted Answer

The variable overhead controllable variance measures the efficiency of using variable overhead resources, specifically by analyzing the difference between actual variable overhead costs and variable overhead costs that were budgeted or planned for. This variance is controllable because it is directly influenced by management and their decisions regarding variable overhead expenses.

The Variable Factory Overhead Controllable Variance Measures