Question

A company has budgeted total overhead at actual units produced of $10,400. The company has actual total overhead of $12,000. The controllable variance is:

Answer 1

Based on the information given the controllable variance is:$1,600.

Controllable variance

Using this formula

Controllable variance=Actual total overhead -Budgeted total overhead at actual units produced

Let plug in the formula

Controllable variance=$12,000-$10,400

Controllable variance=$1,600

Inconclusion the controllable variance is:$1,600.

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