The variance from standard for factory overhead resulting from incurring a total amount of factory overhead cost that is greater or less than the amount budgeted for the level of operations achieved is termed the variable factory overhead controllable variance.

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The variable factory overhead controllable variance measures the difference between the actual overhead costs incurred and the budgeted costs for the actual level of activity, indicating how well overhead costs are controlled.

The Variance from Standard for Factory Overhead Resulting from Incurring