The two fixed overhead variances are the
A)budget and volume variances.
B)rate and efficiency variances.
C)price and usage variances.
D)rate and volume variances.

Question

Quizplus · Accepted Answer

The two fixed overhead variances are the budget variance, which compares the actual fixed overhead with the budgeted fixed overhead, and the volume variance, which measures the difference between the budgeted fixed overhead and the applied fixed overhead based on standard hours allowed for actual production.

The Two Fixed Overhead Variances Are the