The fixed manufacturing overhead volume variance is due to:
A) inefficient or efficient use of whatever the denominator activity is.
B) inefficient or efficient use of overhead resources.
C) a difference between the denominator activity and the standard hours allowed for the actual output of the period.
D) a shift in the amount of hours required to produce the actual output.

Question

Quizplus · Accepted Answer

The fixed manufacturing overhead volume variance is caused by the difference between the denominator activity and the standard hours allowed for the actual output of the period. This means that the actual level of activity was different from the amount that was planned for in the standard. If the actual output required more hours than the standard, it results in unfavorable fixed manufacturing overhead variance, and if the actual output required fewer hours than the standard, it results in a favorable fixed manufacturing overhead variance.

The Fixed Manufacturing Overhead Volume Variance Is Due To