Tthe variable factory overhead controllable variance is
A) $8,981.75 favorable
B) $7,280.75 unfavorable
C) $8,981.75 unfavorable
D) $7,280.75 favorable

Question

Quizplus · Accepted Answer

The controllable variance is calculated as actual overhead incurred less budgeted overhead. 
Actual overhead incurred = $261,585 
Budgeted overhead = ($42,000 + $230,366) = $272,366 
Controllable variance = $261,585 - $272,366 = -$10,781 
Since the actual overhead incurred is less than the budgeted overhead, the variance is unfavorable. 
Therefore, the correct answer is B) $7,280.75 unfavorable.

Tthe Variable Factory Overhead Controllable Variance Is