The fixed overhead volume variance is the difference between the budgeted fixed overhead and
A)the standard fixed overhead cost allocated to production.
B)the budgeted fixed overhead in the static budget.
C)the actual overhead.
D)the budgeted variable overhead.

Question

Quizplus · Accepted Answer

The fixed overhead volume variance is calculated as the difference between the budgeted fixed overhead and the standard fixed overhead cost allocated to production. This variance measures the efficiency of production volume in relation to the fixed overhead costs that were expected to be incurred.

The Fixed Overhead Volume Variance Is the Difference Between the Budgeted