The total fixed overhead variance is comprised of the
A)variable overhead efficiency and fixed variances.
B)fixed overhead budget and volume variances.
C)labor efficiency and rate variances.
D)fixed overhead spending and efficiency variances.

Question

Quizplus · Accepted Answer

The total fixed overhead variance is comprised of the fixed overhead budget variance, which measures the difference between the actual fixed overhead costs and the budgeted fixed overhead costs, and the fixed overhead volume variance, which measures the difference between the budgeted fixed overhead costs and the applied fixed overhead costs based on actual production volume.

The Total Fixed Overhead Variance Is Comprised of the