There can be no volume variance for variable manufacturing overhead.

Question

Quizplus · Accepted Answer

Volume variance refers to the difference between actual output and expected output. Variable manufacturing overheads, such as indirect materials and utilities, are expected to vary directly with output levels, so there is no volume variance associated with them. However, there may be a variable overhead efficiency variance if the actual indirect costs incurred per unit of output differ from the expected costs.

There Can Be No Volume Variance for Variable Manufacturing Overhead