What is the formula for fixed overhead volume variance?
A)AFOH − SFOR × SH
B)(AFOH − SFOR) × AH
C)AFOH− (SH × SFOR)
D)(AFOH − SFOR) × SH

Question

Quizplus · Accepted Answer

Fixed Overhead Volume Variance is calculated as the difference between the actual fixed overhead (AFOH) and the standard fixed overhead rate (SFOR) multiplied by the standard hours (SH). This measures the efficiency in utilizing the budgeted capacity.

What Is the Formula for Fixed Overhead Volume Variance