The ________ "shows how well management has controlled overhead costs."

Question

Quizplus · Accepted Answer

Overhead flexible budget variance shows the difference between the total budgeted overhead costs and the actual overhead costs incurred, taking into account the difference in the actual and budgeted level of activity. A favorable overhead flexible budget variance indicates that the actual overhead costs were lower than the budgeted overhead costs, which means that management has controlled overhead costs effectively.

The ________ "Shows How Well Management Has Controlled Overhead Costs