Overhead Controllable Variance The difference between the total actual and budgeted overhead is known as Overhead Controllable Variance. It is the combination of both fixed and variable overhead variances. Overhead Volume Variance The difference between the total fixed overhead applied and total budgeted overhead is known as Overhead Volume Variance. To determine: The overhead controllable variance and find whether it is favorable or unfavorable The overhead volume variance and find whether it is favorable or unfavorable. Make a report on overhead variance with 9,000 units of activity level.

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Chapter 23, Problem 21E

To determine

Overhead Controllable Variance

The difference between the total actual and budgeted overhead is known as Overhead Controllable Variance. It is the combination of both fixed and variable overhead variances.

Overhead Volume Variance

The difference between the total fixed overhead applied and total budgeted overhead is known as Overhead Volume Variance.

To determine:

The overhead controllable variance and find whether it is favorable or unfavorable

The overhead volume variance and find whether it is favorable or unfavorable.

Make a report on overhead variance with 9,000 units of activity level.

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