Under the two-variance approach,the volume variance is computed by subtracting ____ based on standard input allowed for the production achieved from budgeted overhead.
A)applied overhead
B)actual overhead
C)budgeted fixed overhead plus actual variable overhead
D)budgeted variable overhead

Question

Quizplus · Accepted Answer

The volume variance is computed by subtracting applied overhead (based on standard input allowed for the production achieved) from budgeted overhead. This variance measures the difference between how much overhead should have been applied given the actual production volume and the amount of overhead that was budgeted for that level of production.

Under the Two-Variance Approach,the Volume Variance Is Computed by Subtracting