Which of the following variances is generally not reported as being favourable or unfavourable?
A) Variable overhead efficiency variance
B) Direct labour rate variance
C) Fixed overhead volume variance
D) Direct materials usage variance

Question

Quizplus · Accepted Answer

The fixed overhead volume variance is generally not reported as being favourable or unfavourable because it is simply a measure of the difference between budgeted fixed overhead cost and actual fixed overhead cost based on the actual production volume. It does not reflect whether costs were under or over budget.

Which of the Following Variances Is Generally Not Reported as Being