What does the controllable variance measure?
A) Whether a company incurred more or less fixed overhead costs compared to the amount of overhead applied
B) Whether a company incurred more or less overhead costs than allowed
C) The efficiency of using variable overhead resources
D) Whether the production manager is able to control the production facility

Question

Quizplus · Accepted Answer

Controllable variance measures whether a company incurred more or less overhead costs than allowed. It is used to evaluate the effectiveness of management in controlling costs.

What Does the Controllable Variance Measure