The difference between budgeted fixed factory overhead for a period and the amount of the fixed factory overhead applied to production during the period is the:
A)Fixed factory overhead efficiency variance.
B)Fixed factory overhead production-volume variance.
C)Fixed factory overhead spending variance.
D)Fixed factory overhead sales-volume variance.
E)Fixed factory overhead flexible budget variance.

Question

Quizplus · Accepted Answer

The fixed factory overhead production-volume variance measures the difference between the budgeted fixed overhead and the applied fixed overhead based on actual production levels.

The Difference Between Budgeted Fixed Factory Overhead for a Period