_____ is are) computed for fixed overhead.
A)Production-volume variance
B)Flexible-volume variance
C)Production-volume variance and flexible-budget variance
D)None of these answers is correct

Question

Quizplus · Accepted Answer

Production-volume variance and flexible-budget variance are both computed for fixed overhead. Production-volume variance measures the difference between the budgeted fixed overhead and the fixed overhead applied to actual production, reflecting the impact of operating at a different level of capacity than planned. Flexible-budget variance, on the other hand, compares the actual fixed overhead costs to what the fixed overhead costs should have been for the actual level of activity, allowing for adjustments in budget expectations based on actual production levels.

_____ Is Are) Computed for Fixed Overhead