The fixed overhead volume variance is the difference between actual production volume and actual sales volume.The fixed overhead volume variance is the difference between applied fixed overhead and budgeted fixed overhead.

Question

Quizplus · Accepted Answer

The first sentence is incorrect, as the fixed overhead volume variance is the difference between the budgeted fixed overhead and the fixed overhead applied to production. The second sentence is correct in stating that the fixed overhead volume variance is the difference between applied and budgeted fixed overhead.

The Fixed Overhead Volume Variance Is the Difference Between Actual