The difference between the budgeted fixed overhead at 100% of normal capacity and the standard fixed cost for the actual units produced is termed volume variance.

Question

Quizplus · Accepted Answer

The definition given in the statement is correct and describes the volume variance. The difference between budgeted fixed overhead at 100% normal capacity and the actual fixed overhead is called capacity variance.

The Difference Between the Budgeted Fixed Overhead at 100% of Normal