What is the variable factory overhead controllable variance?
A) $12,000 unfavorable
B) $12,000 favorable
C) $14,000 unfavorable
D) $26,000 unfavorable

Question

Quizplus · Accepted Answer

The variable factory overhead controllable variance measures the difference between the actual variable overhead cost and the budgeted variable overhead cost that can be controlled by the managerial action. Therefore, a favorable variance means that actual variable overhead cost is less than the budgeted cost. Option B is the only favorable choice, indicating that the actual variable overhead cost was less than the budgeted cost by $12,000.

What Is the Variable Factory Overhead Controllable Variance