Which of the following could be indicated by the fixed overhead production volume variance?
A)Labor rates were lower than expected.
B)A higher mix of unskilled workers were utilized.
C)Raw materials were of lower quality than expected.
D)The quantity of units produced was different than expected.
E)None of the answer choices is correct.

Question

Quizplus · Accepted Answer

The fixed overhead production volume variance measures the difference between the actual overhead incurred and the budgeted overhead for the level of production achieved. Therefore, the quantity of units produced being different than expected would be reflected in this variance. Choices A, B, and C are not related to fixed overhead production volume variance.

Which of the Following Could Be Indicated by the Fixed