The fixed overhead volume variance measures the use of existing facilities and capacity.

Question

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The fixed overhead volume variance is a measure of the difference between the fixed overhead cost applied to production and the actual fixed overhead cost incurred, specifically related to the volume of units produced. It measures whether the actual volume of production is more or less than the planned level of production, and therefore, it measures the use of existing facilities and capacity.

The Fixed Overhead Volume Variance Measures the Use of Existing