The Fixed Overhead Volume Variance Is Calculated by Taking the Difference

question 20

Multiple Choice

The fixed overhead volume variance is calculated by taking the difference between:

• A) actual fixed overhead and budgeted fixed overhead.
• B) budgeted fixed overhead and budgeted variable overhead.
• C) budgeted fixed overhead and applied fixed overhead.
• D) budgeted fixed overhead per the flexible budget and budgeted fixed overhead per the static budget.

---

Definitions:

Spending Variances

Differences between the budgeted amount of expense and the actual amount spent.

Customers Served

The number of customers who have purchased or utilized a service from a business within a given time period.

Planning Budget

A budget prepared for a specific level of activity; it may be adjusted or reevaluated based on the level of activity actually achieved.

Patient-Visits

A metric in healthcare indicating the number of times patients see a healthcare provider or visit a healthcare facility.