What Does the Fixed Overhead Volume Variance Measure

question 24

Multiple Choice

What does the fixed overhead volume variance measure?

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

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