Which of the following types of companies would not have a need to calculate a fixed overhead volume variance?
A) A company that uses variable costing.
B) A company that uses absorption costing.
C) A company that applies fixed overhead based on direct labor hours.
D) A company that uses activity-based costing (ABC).

Question

Quizplus · Accepted Answer

A company that uses variable costing does not allocate fixed overhead costs to products or services. Therefore, there is no need to calculate a fixed overhead volume variance.

Which of the Following Types of Companies Would Not Have