The Fixed Overhead Volume Variance Is a Measure of

question 198

Multiple Choice

The fixed overhead volume variance is a measure of

• 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 cost of overspending on fixed overhead items and the effect of the actual output differing from the output used to calculate predetermined fixed overhead rate.
• E) 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.