The difference between budgeted ﬁxed manufacturing overhead and the ﬁxed overhead applied to production is the:
A)sum of the spending and eﬃciency variances.
B)controllable variance.
C)eﬃciency variance.
D)spending variance.
E)volume variance.

Question

Quizplus · Accepted Answer

The volume variance is the difference between budgeted fixed manufacturing overhead and the fixed overhead applied to production, reflecting the impact of production volume differences.

The Difference Between Budgeted ﬁXed Manufacturing Overhead and the ﬁXed