Which of the following is used to calculate the fixed overhead volume variance?
A) Mixed Overhead - Variable Overhead
B) Fixed Overhead - Variable Overhead
C) Budgeted Fixed Overhead - Applied Fixed Overhead
D) Actual Fixed Overhead - Applied Fixed Overhead
E) None of these

Question

Quizplus · Accepted Answer

The fixed overhead volume variance is the difference between the actual fixed overhead incurred and the budgeted (or standard) fixed overhead, based on the actual level of production. Therefore, the formula for calculating fixed overhead volume variance is Budgeted Fixed Overhead - Applied Fixed Overhead. Options A and B involve mixed or variable overhead, which are not relevant for calculating fixed overhead volume variance. Option D subtracts the applied fixed overhead from the actual fixed overhead, which would give the fixed overhead spending variance. Therefore, option C is the correct answer for calculating the fixed overhead volume variance.

Which of the Following Is Used to Calculate the Fixed