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The Fisher relation is
Controllable Variance
The difference between actual costs and budgeted costs that management has the power to influence or control through decisions and actions.
Variable Factory Overhead
Costs in manufacturing that vary with the level of production output, such as utilities and materials used in the production process.
Controllable Variance
The difference between actual budgeted costs and the controllable costs within a budget period.
Fixed Factory Overhead
Indirect manufacturing costs that remain relatively constant regardless of the level of production, such as rent, depreciation, and salaries of factory supervisors.
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