The volume variance is nonzero whenever:
A)standard hours allowed for the output of a period differ from the denominator level of activity.
B)actual hours differ from the denominator level of activity.
C)standard hours allowed for the output of a period differ from the actual hours during the period.
D)actual fixed manufacturing overhead costs incurred during a period differ from budgeted fixed manufacturing overhead costs as contained in the flexible budget.

Question

Quizplus · Accepted Answer

The volume variance occurs when the standard hours allowed for the output of a period differ from the denominator level of activity, reflecting a difference between the expected (or standard) volume of production and the volume used to allocate fixed overhead costs.

The Volume Variance Is Nonzero Whenever