Chapter 21, Problem 13QS

To determine

Controllable Overhead Variance:

The controllable overhead variance is the deviation of budgeted overhead of standard number of units from the actual expenses incurred popularly within the factory overheads. Also, controllable overhead variance is confined to factory overheads irrespective of any in the volume. Through this the unexpected costs may be minimized by keeping the track record of expenses and comparing them with the standard ones.

Compute controllable overhead variance and classify them as favorable and unfavorable.