ECONOMICS

Detailed explanation-1: -The controllable variance means the variances that influence the business which consists of both fixed and factory overhead variances. In the controllable variance, the business estimates the overhead variances between the actual and estimated.

Detailed explanation-2: -The variable factory overhead controllable variance is the difference between the actual variable overhead costs and the budgeted variable overhead for actual production.

Detailed explanation-3: -Fixed overhead volume variance is the difference between the amount budgeted for fixed overhead costs based on production volume and the amount that is eventually absorbed. This variance is reviewed as part of the cost accounting reporting package at the end of a given period.

Detailed explanation-4: -Which statement regarding variable overhead variance analysis is true? The variable overhead efficiency variance is exactly the same as the direct labor rate variance.