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

Comprehend the recording of transactions related to the purchase and use of raw materials in a manufacturing setting.

Identify the roles of different departments in a manufacturing process and their impact on product costing.

Apply process costing methods to compute cost per equivalent unit for materials, labor, and overhead.

Recognize the importance of estimating the degree of completion to compute equivalent units.