How Is the Fixed Overhead Volume Variance Calculated

question 75

Multiple Choice

How is the fixed overhead volume variance calculated?

• A)The difference between the standard fixed overhead rate and the actual fixed overhead rate multiplied by the actual hours used
• B)The difference between the standard fixed overhead costs allocated to production and the budgeted fixed overhead costs
• C)The difference between the actual fixed overhead costs incurred and the budgeted fixed overhead costs
• D)The difference between the actual fixed overhead costs incurred and the standard fixed overhead costs allocated

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Definitions:

Effective Managers

Managers who achieve organizational goals efficiently and effectively by planning, organizing, leading, and controlling resources.

Authority

Refers to the power or right to give orders, make decisions, or enforce obedience.

Accountability

The obligation of an individual or organization to account for its activities, accept responsibility for them, and to disclose the results in a transparent manner.

Organizational Behavior

Examining how humans behave within organizations, how they interact with these organizations, and the analysis of the organizations themselves.