The fixed overhead volume variance is due to which of the following?
A) Inefficient or efficient use of whatever the denominator activity is.
B) Inefficient or efficient use of overhead resources.
C) A difference between the denominator activity and the standard hours allowed for the actual output of the period.
D) A shift in the amount of hours required to produce the actual output.

Question

Quizplus · Accepted Answer

The fixed overhead volume variance is caused by a difference between the denominator activity and the standard hours allowed for the actual output of the period. It measures the impact of the difference between the actual level of production and the budgeted level of production on fixed overhead costs.

The Fixed Overhead Volume Variance Is Due to Which of the Following