The Fixed Overhead Volume Variance Is Calculated by Taking the Difference

question 55

Multiple Choice

The fixed overhead volume variance is calculated by taking the difference between:

• A) actual fixed overhead and budgeted fixed overhead.
• B) budgeted fixed overhead and budgeted variable overhead.
• C) budgeted fixed overhead and applied fixed overhead.
• D) actual fixed overhead and applied fixed overhead.

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Definitions:

Passengers

Passengers refer to individuals who travel in a vehicle but are not directly involved in the vehicle's operation, often regarded in contexts such as public transportation, airlines, and automobiles.

Supplies Cost

The cost associated with the items and materials used in the operation of a business.

Spending Variance

The difference between the budgeted or planned amount of expense and the actual amount spent.

Cost Formula

An equation used to predict costs, often incorporating fixed and variable components.