A volume variance is computed for:
A)both variable and fixed manufacturing overhead.
B)variable manufacturing overhead only.
C)fixed manufacturing overhead only.
D)direct labor costs as well as overhead costs.

Question

Quizplus · Accepted Answer

A volume variance is computed for fixed manufacturing overhead only, as it measures the difference between the budgeted fixed overhead and the applied fixed overhead based on actual production levels.

A Volume Variance Is Computed For