Question

Incurring actual indirect factory wages in excess of budgeted amounts for actual production results in a?

Answer 1

Incurring actual indirect factory wages in excess of budgeted amounts for actual production results in a controllable variance. Therefore, the option B holds true.

What is the significance of controllable variance?

Controllable variance can be referred to or considered as a variance that computes the difference between the actual quantity and the budgeted quantity sold or consumed by a firm in an economy. It can never be deficit, and is always in surplus of the budgeted amounts.

Therefore, the option B holds true and states regarding the significance of controllable variance.

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The question seems to be incomplete. It has been added below for better reference.

Incurring actual indirect factory wages in excess of budgeted amounts for actual production results in a:

a. quantity variance

b. controllable variance

c. volume variance

d. rate variance