The fixed overhead cost variance can be further subdivided into the ________.
A) price variance and the efficiency variance
B) spending variance and flexible-budget variance
C) production-volume variance and the efficiency variance
D) flexible-budget variance and the production-volume variance

Question

Quizplus · Accepted Answer

The fixed overhead cost variance is typically divided into the flexible-budget variance, which compares the actual fixed overheads to what they should have been for the actual level of output, and the production-volume variance, which measures the difference between the budgeted and the applied fixed overheads based on the standard output.

The Fixed Overhead Cost Variance Can Be Further Subdivided into the ________