Fixed factory overhead volume variance is the difference between:
A) the budgeted fixed overhead at 100% of normal capacity and the standard fixed overhead for the actual units produced.
B) the budgeted fixed overhead for actual units produced and the standard fixed overhead for the actual units produced.
C) the budgeted fixed overhead for actual units produced and the actual fixed overhead for the actual units produced.
D) the budgeted fixed overhead at 100% of normal capacity and the actual fixed overhead for the actual units produced.

Question

Quizplus · Accepted Answer

The fixed factory overhead volume variance is calculated as the difference between the budgeted fixed overhead at 100% of normal capacity and the standard fixed overhead for the actual units produced. This variance measures the efficiency in utilizing the production capacity.

Fixed Factory Overhead Volume Variance Is the Difference Between