Because it is a cost variance,the fixed overhead volume variance explains why fixed overhead is underallocated or overallocated.

Name: Because it is a cost variance,the fixed overhead volume variance explains why fixed overhead is underallocated or overallocated.
Brand: Quizplus
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Quizplus · Accepted Answer

The fixed overhead volume variance is not a cost variance; it measures the difference between the budgeted fixed overhead and the applied fixed overhead based on actual production levels, not the allocation of costs.

Because It Is a Cost Variance,the Fixed Overhead Volume Variance