The production volume variance is computed by the difference between the:
A) actual fixed overhead and applied fixed overhead.
B) actual fixed overhead and budget at actual level of activity reached.
C) actual fixed overhead and budget at denominator level of activity planned.
D) budget at actual levels of activity reached and fixed overhead applieD.
Production volume = budget - applieD.

Question

Quizplus · Accepted Answer

The production volume variance is calculated as the difference between the budgeted fixed overhead at the denominator level of activity and the applied fixed overhead, which is based on actual production.

The Production Volume Variance Is Computed by the Difference Between