A negative fixed overhead volume variance can be caused due to the following EXCEPT
A)sales orders at a low level.
B)machine breakdowns.
C)employee inexperience.
D)increase in utility costs.

Question

Quizplus · Accepted Answer

A negative fixed overhead volume variance occurs when actual production levels are below expected levels. Machine breakdowns and employee inexperience can affect production levels, causing a negative variance. Sales orders at a low level can also result in a negative variance as the fixed overhead costs are spread over a smaller quantity of units. However, an increase in utility costs does not directly impact production levels and would not cause a negative fixed overhead volume variance.

A Negative Fixed Overhead Volume Variance Can Be Caused Due