A volume variance will exist for Dori in a month under which of the following conditions?
A) When the production volume differs from sales volume.
B) When the actual direct labour hours differ from standard hours allowed.
C) When there is a budget variance in fixed overhead costs.
D) When the fixed overhead applied to units of product on the basis of standard hours allowed differs from the budgeted fixed overheaD.

Question

Quizplus · Accepted Answer

A volume variance occurs when the fixed overhead applied to units of product based on standard hours allowed differs from the budgeted fixed overhead, indicating a difference in production volume from what was expected.

A Volume Variance Will Exist for Dori in a Month