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Ehimy Garcia
on Dec 17, 2024

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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.

Variable Factory Overhead Controllable Variance

The difference between the actually incurred variable overhead and what was expected, based on the standard cost.

Factory Overhead

All indirect costs related to the manufacturing process, including maintenance, utilities, and salary of supervisory staff.

Standard

Accepted criteria or expected specifications established as a model for measuring quality, performance, or compliance.

  • Comprehend the purpose and calculation of total manufacturing cost variance.
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Dylan CulbertsonDec 18, 2024
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