The fixed overhead volume variance reveals underallocated fixed overhead costs.

Name: The fixed overhead volume variance reveals underallocated fixed overhead costs.
Brand: Quizplus
Rating: 4.9 (37 reviews)

Question

Quizplus · Accepted Answer

The fixed overhead volume variance reveals the difference between the budgeted fixed overhead and the fixed overhead applied to production, based on standard hours allowed for the actual output, indicating whether the company produced more or less than expected, not underallocation of costs.

The Fixed Overhead Volume Variance Reveals Underallocated Fixed Overhead Costs