Variable overhead costs:
A)never have any unused capacity
B)have no production-volume variance
C)allocated are always the same as the flexible-budget amount
D)All of these answers are correct.

Question

Quizplus · Accepted Answer

Variable overhead costs have no production-volume variance because they are applied at a fixed rate per unit of output. They are always allocated the same as the flexible-budget amount because they are based on the expected level of activity.

Variable Overhead Costs