
Concept explainers
(a)
Variable factory overhead controllable variances:
The difference between the actual variable overhead costs and the standard overhead for actual production is known as the variable factory overhead controllable variances. The variable factory overhead controllable variance is computed as follows:
Fixed factory overhead volume variances:
Factory overhead volume variances refers to the difference between the budgeted fixed
The variable factory overhead controllable variance.
(b)
The fixed factory overhead volume variance.

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Chapter 8 Solutions
Managerial Accounting
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