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

Question

Quizplus · Accepted Answer

Controllable variance includes variances that management can influence or control, such as indirect factory wages. When actual indirect factory wages exceed the budgeted amounts, it reflects a controllable variance because management could potentially control or influence these costs.

Incurring Actual Indirect Factory Wages in Excess of Budgeted Amounts