The fixed overhead volume variance is the difference between:
A)Actual fixed overhead and budgeted fixed overhead.
B)Actual fixed overhead and applied fixed overhead.
C)Applied fixed overhead and budgeted fixed overhead.
D)Actual fixed overhead and the standard fixed overhead rate times the actual cost driver.

Question

Quizplus · Accepted Answer

The fixed overhead volume variance is calculated as the difference between the applied fixed overhead and the budgeted fixed overhead. This variance indicates the difference between the fixed overhead costs that were actually incurred (applied) and the fixed overhead costs that were expected (budgeted) given the level of output achieved.

The Fixed Overhead Volume Variance Is the Difference Between