What Does the Fixed Overhead Volume Variance Measure

question 50

Multiple Choice

What does the fixed overhead volume variance measure?

• A)the cost of overspending on fixed overhead items
• B)the effect of the actual output differing from the output used to calculate the predetermined fixed overhead rate
• C)the cost of unused activity capacity acquired
• D)both the effect of the actual output differing from the output used to calculate the predetermined fixed overhead rate and the cost of unused activity capacity

Acknowledge the role and preparation of adjusting entries in the accounting process.

Comprehend the function and benefits of using a worksheet in the accounting cycle.

Appreciate the significance of closing entries and their effect on the accounts.

Understand how to prepare and interpret financial statements and the work sheet.