The difference between the total factory overhead cost in the flexible budget for the actual units produced and the amount of factory overhead cost applied to products using the standard overhead rate is called the factory overhead ________:
A) Flexible-budget variance
B) Production-volume variance
C) Total fixed cost variance
D) Efficiency variance
E) Controllable variance

Question

Quizplus · Accepted Answer

The production-volume variance measures the difference between the budgeted overhead for the actual level of production and the overhead applied to products, highlighting discrepancies due to the volume of production differing from expectations.

The Difference Between the Total Factory Overhead Cost in the Flexible