The overhead controllable variance is the difference between the
A) budgeted overhead based on standard hours allowed and the overhead applied to production.
B) budgeted overhead based on standard hours allowed and budgeted overhead based on actual hours worked.
C) actual overhead and the overhead applied to production.
D) actual overhead and budgeted overhead based on standard hours allowed.

Question

Quizplus · Accepted Answer

The overhead controllable variance is calculated as the difference between the actual overhead incurred and the budgeted overhead based on the standard hours allowed for the actual production achieved. This variance helps in assessing how well the overhead costs were controlled compared to the budgeted expectations.

The Overhead Controllable Variance Is the Difference Between the