A negative fixed overhead volume variance can be caused due to all of the following except
A) sales orders at a low level
B) machine breakdowns
C) employee inexperience
D) increase in utility costs

Question

Quizplus · Accepted Answer

A negative fixed overhead volume variance means that actual overhead costs were higher than budgeted despite producing fewer units than budgeted. This could be caused by a decrease in sales orders, machine breakdowns, or employee inexperience which would lead to lower production levels. However, an increase in utility costs is not directly related to production levels and would not be a factor in causing a negative fixed overhead volume variance.

A Negative Fixed Overhead Volume Variance Can Be Caused Due