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Multiple Choice QuestionA company has budgeted total overhead of $10,575 at actual units produced and actual total overhead of $9,775. The controllable variance is:Multiple choice question.$800 U$800 F

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Multiple Choice QuestionA company has budgeted total overhead of 10,575atactualunitsproducedandactualtotaloverheadof10,575 at actual units produced and actual total overhead of 9,775. The controllable variance is:Multiple choice question.800U800 U800 F

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Solution

The controllable variance is calculated by subtracting the actual total overhead from the budgeted total overhead.

In this case, the budgeted total overhead is 10,575andtheactualtotaloverheadis10,575 and the actual total overhead is 9,775.

So, the calculation would be:

10,575(Budgetedtotaloverhead)10,575 (Budgeted total overhead) - 9,775 (Actual total overhead) = $800

Since the actual total overhead is less than the budgeted total overhead, the company has a favorable variance.

So, the answer is $800 F.

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