Which variance is commonly associated with measuring the cost of under- or over-utilization of plant capacity?
A)The variable-overhead spending variance.
B)The variable-overhead efficiency variance.
C)The fixed-overhead budget variance.
D)The fixed-overhead volume variance.
E)The total fixed-overhead variancE.

Question

Quizplus · Accepted Answer

The fixed-overhead volume variance is commonly associated with measuring the cost of under- or over-utilization of plant capacity. This variance is calculated by multiplying the standard fixed overhead rate per unit by the difference between the budgeted level of production and the actual level of production.

Which Variance Is Commonly Associated with Measuring the Cost of Under-