The difference between budgeted volume and practical capacity,multiplied by the fixed overhead rate,is the:
A)expected (planned)capacity variance.
B)unexpected (unplanned)capacity variance.
C)total capacity variance.
D)volume variance.

Question

Quizplus · Accepted Answer

The expected (planned) capacity variance is calculated by taking the difference between budgeted volume and practical capacity, then multiplying by the fixed overhead rate.

The Difference Between Budgeted Volume and Practical Capacity,multiplied by the Fixed