Introduction:
Controllable Variance:
Controllable Variance is used for the factory
The formula to calculate the Controllable Variance for factory overhead is as follows:
Fixed Overhead Volume variance:
The Fixed Overhead Volume variance is the difference between the allocated fixed overhead cost and the budgeted fixed overhead cost The formula to calculate the Fixed Overhead volume Variance is as follows:
Note: The allocated fixed overhead is calculated with the help of following formula:
The effect of operating level on controllable variance and volume variance

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Chapter 23 Solutions
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