The sum of the variable overhead spending variance, the variable overhead efficiency variance, and the fixed overhead spending variance is the:
A) Production variance.
B) Quantity variance.
C) Volume variance.
D) Price variance.
E) Controllable variance.

Question

Quizplus · Accepted Answer

The sum of the variable overhead spending variance, the variable overhead efficiency variance, and the fixed overhead spending variance is known as the controllable variance. This is because these variances are typically within the control of management, reflecting the difference between the actual costs incurred and the budgeted costs.

The Sum of the Variable Overhead Spending Variance, the Variable