The fixed manufacturing overhead variance caused by actual activity being different from the estimated activity used in calculating the predetermined overhead application rate is called the:
A)spending variance.
B)budget variance.
C)efficiency variance.
D)volume variance.

Question

Quizplus · Accepted Answer

The volume variance is the difference between the budgeted fixed overhead and the applied fixed overhead, which arises due to the difference between actual and estimated activity levels.

The Fixed Manufacturing Overhead Variance Caused by Actual Activity Being