Which of the following variances is caused by a difference between the denominator activity in the predetermined overhead rate and the standard hours allowed for the actual production of the period?
A) Variable overhead spending variance.
B) Variable overhead efficiency variance.
C) Fixed overhead budget variance.
D) Fixed overhead volume variance.

Question

Quizplus · Accepted Answer

The fixed overhead volume variance is caused by the difference between the denominator activity level used to calculate the predetermined overhead rate and the actual standard hours allowed for the production achieved.

Which of the Following Variances Is Caused by a Difference