Into what components is the manufacturing overhead variance decomposed when it is analyzed?
A)Overhead volume variance and controllable overhead variance
B)Overhead rate variance and overhead efficiency variance
C)Fixed overhead variance and variable overhead variance
D)Controllable overhead variance and uncontrollable overhead variance

Question

Quizplus · Accepted Answer

Manufacturing overhead variance is typically decomposed into overhead volume variance and controllable overhead variance. The volume variance reflects the difference between the budgeted and actual production levels, while the controllable variance reflects the difference between actual and budgeted overhead costs that management can control.

Into What Components Is the Manufacturing Overhead Variance Decomposed When