Incurring actual indirect factory wages in excess of budgeted amounts for actual production results in a:
A)unfavorable quantity variance.
B)unfavorable controllable variance.
C)favorable volume variance.
D)favorable labor rate variance.

Question

Quizplus · Accepted Answer

Indirect factory wages are considered a controllable cost, meaning they can be influenced by management. Incurring actual indirect factory wages in excess of budgeted amounts indicates that management did not effectively control these costs, resulting in an unfavorable controllable variance.

Incurring Actual Indirect Factory Wages in Excess of Budgeted Amounts