A 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
Question
A company has budgeted total overhead of 9,775. The controllable variance is:Multiple choice question.800 F
Solution
The controllable variance is calculated by subtracting the actual total overhead from the budgeted total overhead.
Here's the step-by-step calculation:
- Budgeted total overhead = $10,575
- Actual total overhead = $9,775
So, Controllable Variance = Budgeted total overhead - Actual total overhead
= 9,775 = $800
Since the actual overhead is less than the budgeted overhead, the variance is favorable. Therefore, the answer is $800 F.
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