What does the overhead controllable variance indicate?
A)The company produced more or less than the quantity planned.
B)Material quantity standards were more or less than the actual quantity used.
C)Material price standards were more or less than the actual price.
D)Actual overhead cost was more or less than the amount indicated in the flexible budget.

Question

Quizplus · Accepted Answer

The overhead controllable variance indicates the difference between the actual overhead cost and the amount indicated in the flexible budget, which is a measure of how well the company controlled its overhead costs. Therefore, D is the correct choice. A, B, and C are incorrect because they refer to other types of variance that are not related to overhead controllable variance.

What Does the Overhead Controllable Variance Indicate