The difference between budgeted fixed manufacturing overhead and the fixed overhead applied to production is the:
A) sum of the spending and efficiency variances.
B) controllable variance.
C) efficiency variance.
D) spending variance.
E) volume variance.

Question

Quizplus · Accepted Answer

The difference between budgeted fixed manufacturing overhead and the fixed overhead applied to production is known as the volume variance. This variance measures the difference between what was expected (budgeted) and what was actually applied based on the standard hours allowed for the actual production achieved.

The Difference Between Budgeted Fixed Manufacturing Overhead and the Fixed