Montaigne Corp. has the following information about its standards and production activity for November. The controllable variance is:
A) $1,295U.
B) $1,295F.
C) $2,400U.
D) $2,400F.
E) $3,695U.

Question

Quizplus · Accepted Answer

The controllable variance is calculated as the difference between the actual overhead costs incurred and the budgeted overhead costs based on actual activity. The given correct answer indicates that the variance is $1,295 unfavorable (U), meaning the actual costs were higher than the budgeted costs by this amount.