Asked by Jackson Boone on May 05, 2024
Verified
The controllable variance measures
A) operating results at less than normal capacity
B) the efficiency of using variable overhead resources
C) operating results at more than normal capacity
D) control over fixed overhead costs
Controllable Variance
Controllable Variance is the difference between actual spending and budgeted amounts that management could control or influence directly.
Variable Overhead
Costs that vary with production output, such as utilities or raw materials, but are not directly tied to a specific unit of production.
Operating Results
The financial outcomes achieved from a company's core business operations.
- Discriminate among variable, fixed, and total factory overhead variances.
- Acquire knowledge on the formulas and techniques for calculating standard cost variances.
Verified Answer
Learning Objectives
- Discriminate among variable, fixed, and total factory overhead variances.
- Acquire knowledge on the formulas and techniques for calculating standard cost variances.
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