What will result if the actual overhead costs incurred are greater than the amount in the flexible budget?
A)The controllable overhead variance will be unfavorable.
B)The overhead volume variance will be favorable.
C)The overhead volume variance will be unfavorable.
D)The controllable overhead variance will be favorable.

Question

Quizplus · Accepted Answer

When actual overhead costs exceed the flexible budget amount, it indicates that the company spent more on overhead than planned, leading to an unfavorable controllable overhead variance. This variance measures the difference between actual overhead costs and the budgeted costs for the actual level of activity, highlighting inefficiencies or cost overruns in managing overhead.

What Will Result If the Actual Overhead Costs Incurred Are