Which of the following statements is true of fixed overhead cost variances?
A) The difference between actual costs and flexible budget costs will give the production volume variance.
B) The difference between actual costs and static budget costs will give the production volume variance.
C) The difference between flexible budget costs and allocated overhead costs will give the production volume variance.
D) The difference between static budget costs and flexible budget costs will give the production volume variance.

Question

Quizplus · Accepted Answer

The production volume variance is calculated as the difference between the flexible budget costs and the allocated overhead costs. This variance reflects the difference between the expected and actual production levels.

Which of the Following Statements Is True of Fixed Overhead