The Fixed Overhead Volume Variance

question 44

Multiple Choice

The fixed overhead volume variance

• A) is useless, as it does not serve a control purpose. Rather, it is calculated only as a difference between total fixed overhead variance and fixed overhead budget variance.
• B) is useless for control purposes, but allows managers to estimate capacity costs.
• C) is useless for control purposes, but useful for product costing purposes.
• D) is useful only when conducting two-way overhead variance analyses.

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