Which of the following is the correct mathematical expression to calculate the fixed overhead production-volume variance?
A) static-budget amount - flexible-budget amount
B) flexible-budget amount - actual costs incurred
C) actual costs incurred - fixed overhead allocated for actual output
D) budgeted fixed overhead - fixed overhead allocated for actual output

Question

Quizplus · Accepted Answer

The fixed overhead production-volume variance is the difference between the budgeted fixed overhead and the fixed overhead allocated for actual output, which is D. Option A is the formula for the static-budget variance, Option B is the formula for the flexible-budget variance, and Option C is the formula for the fixed overhead spending variance.

Which of the Following Is the Correct Mathematical Expression to Calculate