The two variances for fixed overhead are
A)spending and efficiency variances.
B)efficiency and volume variances.
C)spending and volume variances.
D)budget and efficiency variances.

Question

Quizplus · Accepted Answer

Fixed overhead variances include spending (or budget) variance, which compares the actual fixed overhead costs to the budgeted costs, and volume variance, which measures the difference between the budgeted fixed overhead and the applied fixed overhead based on standard hours allowed for the actual output.

The Two Variances for Fixed Overhead Are