A controllable variance refers to the rate section of a variance. A variance is consisting of two primary elements, which are the volume variance and the rate variance. The volume element is that section of the variance attributable to changes in sales volume or unit usage from a regular or budgeted amount.
Overall or Net Factory Overhead Variance: Definition: Overall or net factory overhead variance is the difference between actually incurred factory overhead and expenses charged into process using the standard factory overhead rate. Formula of Overall or Net Factory Overhead Variance: Overall or net overhead
Factory Overhead Controllable Variance: Learning Objective of the article: Define and explain factory overhead controllable variance. How FOH controllable variance is calculated? What are the reasons / causes of unfavorable controllable variance? Contents: Definition Formula of factory overhead controllable variance Example Reasons / causes